BOSTON (Reuters) – Fidelity Investments’ courtroom battle with the IRS over disallowed tax credits drew to a close on Tuesday when lawyers clashed over whether the mutual fund giant was a bonafide partner in the production of chemically treated coal.
U.S. Tax Court Judge David Gustafson said he may deliver his decision in the case as early as Wednesday. The outcome of the trial is being closely watched by Wall Street firms and other U.S. corporations because the production of chemically treated, or refined coal, generates more than $1 billion a year in tax credits. Beneficiaries of the tax credit program include Goldman Sachs Group Inc , JPMorgan Chase & Co and pharmaceutical company Mylan NV , to name a few.
Fidelity - Production - Coal - South - Carolina
Boston-based Fidelity invested in the production of refined coal at three South Carolina power plants to qualify for tax credits that could total up to $330 million over 10 years. The coal is treated with chemicals to cut mercury and smog pollution.
The U.S. Internal Revenue Service, however, disallowed millions of dollars in tax credits and claimed losses reported by a Fidelity-led partnership in 2011 and 2012. The IRS says the partnership...
Wake Up To Breaking News!
"It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift