Coca-Cola Pays $6 Billion IRS Tax, Appeals Ruling

will pay $6 billion in back taxes and interest to the Internal Revenue Service while appealing a federal tax court judge’s decision in a 17-year-old dispute concerning income from foreign licensees for 2007-2009. The Atlanta beverage giant maintains it will win the legal dispute, asserting the IRS misinterpreted regulations regarding over $9 billion in profits from foreign affiliates.

Coca-Cola has followed the same income calculation method for nearly 30 years, as stated in a 2015 Securities and Exchange Commission filing. The company expects some or all of the $6 billion, plus accrued interest, will be refunded if its appeal succeeds.

Coca-Cola has 90 days to file appeal documents. This payment follows a recent stronger-than-expected second quarter, where the company raised its full-year sales guidance due to product price increases.