Coke, IRS spar over back taxes

Coca-Cola said it was notified by the IRS that it owes $3.3 billion more in federal taxes, as well as interest, for 2007 to 2009.

The company said in a regulatory filing that it believes the assessments from the Internal Revenue Service are without merit and plans to pursue “all administrative and judicial remedies necessary to resolve the matter.”

The maker of Sprite, Dasani, Powerade and other drinks says the disagreement is over how much it should report as taxable income in the U.S., in relation with licensing that allows its foreign affiliates to sell products like soft drink concentrates to bottlers overseas.