Ford Motor Co. will get another day in court with regards to its row with Internal Revenue Service after the United States Supreme Court told federal appeals court to get a new look on the matter. The appeals court had upheld the method of the IRS in calculating the interest owed for overpaid taxes to Ford, pegged at $445 million.
The Supreme Court, however, has told the appeals court to consider whether Ford's bid for interest should have been filed in a different court. The row comes from money Ford deposited with the IRS to cover possible underpayments for nine tax years during the 1983-1994 period. Ford then requested the IRS to treat the money as advance payments on any new taxes it might owe.
The IRS eventually determined that Ford had overpaid its taxes for the concerned years. The carmaker argues that that the interest on the overpayments should have started to accrue when it deposited the money. On the other hand, the IRS contends that the starting date should be when it was told to treat the money as advance payments. Two lower courts agreed with the IRS.