Corporations’ Tax Reserves Much Bigger than Payments (Accounting Today)

Fortune 500 companies have $187.5 billion of reserves for uncertain tax positions, study shows.

U.S. corporates are setting aside more reserves for uncertain tax positions than they are paying the federal government, according to an article in Accounting Today. A study of SEC filings by Fortune 500 companies by the Ferraro Law firm finds they have $187.5 billion in reserves, which compares to the $181 billion in corporate income taxes paid by all corporations last year.

The study says Pfizer has the biggest reserves, at $7.3 billion, followed by J.P.Morgan Chase with $7.2 billion, Microsoft with $6.9 billion and General Electric with $6.4 billion.

 

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