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Compaq taking IRS to court in tax dispute. $88 million debate centers on operations in Singapore.
An $88.3 million dispute between Compaq Computer Corp. and the Internal Revenue Service has the local computer manufacturer taking the taxman to court.
Compaq filed suit Nov. 12 in U.S. Tax Court in Washington, D.C., seeking to overturn an IRS order mandating the company to pay $75.9 million in back taxes for 1991 and 1992 and nearly $548,000 in penalties.
Furthermore, Compaq argues that the federal government now owes the company almost $11.8 million in unrealized tax credits for the period.
At issue is how the IRS treated the company's purchase of printed circuit board assemblies and central processor units from Compaq Asia in Singapore, a Compaq …
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