Caterpillar reached a settlement with the Internal Revenue Service that resolves all issues for tax years 2007-2016, without any penalties.
"We have been cooperating with the government in its review of the issues and are pleased to have reached this resolution with the IRS," the company said in a statement.
According to the company, the settlement includes resolution of disputed tax treatment for profits earned by Caterpillar SARL.
“We vigorously contested the IRS’s application of the ‘substance-over-form’ or ‘assignment-of-income’ judicial doctrines and its proposed increases to tax and imposition of accuracy-related penalties,” according to an SEC filing. “The settlement does not include any increases to tax in the United States based on those judicial doctrines and does not include any penalties.”
The dispute included a high-profile raid on Cat headquarters in Peoria in 2017.
Source: Caterpillar
