Technology company, 3M Co (MMM) joins the IRS in tax court over a tax dispute involving royalty payments.
Despite the high volume of international trade between the United States and Brazil, the two countries have yet to establish a tax agreement, which has caused issues between U.S companies and the IRS.
3M is now dealing with the IRS regarding royalty payments from 2006, which includes trademarks for Post-it notes and Nexcare bandages from the company’s Brazilian unit.
The IRS wants to tax the royalty payments, and claims that the company is not bringing enough of them to the U.S. MMM claims that laws in Brazil prevent it from sending the payments abroad.
The company remitted $5.1 million in payments to the U.S in 2006, while the IRS claims that the company should have remitted an additional $27.8 million in payments.
3M shares were mostly flat during premarket trading Thursday. The stock has increased 20% in the past year.
The Bottom Line
Shares of 3M Co (MMM) have a 2.40% yield, based on Wednesday’s closing price of $105.68.
3M Co (MMM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.