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Exxon prevails in $200 million tax penalty case


On January 13, 2021, the US District Court for the Northern District of Texas ruled in favor of Exxon Mobil Corporation ( Exxon ) in its battle against the government over tax penalties. Exxon filed amended returns for its 2006-2009 tax years seeking a $1.35 billion tax refund based upon a change of character of certain transactions (from mineral leases to purchase transactions). The government disallowed the refund claims and imposed a $200 million penalty pursuant to Internal Revenue Code (IRC) section 6676. Exxon paid the penalty and filed suit for a refund.
We have written extensively concerning IRC section 6676, warning taxpayers of this potential landmine.
See, e.g., ....

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