Coca-Cola Takes IRS Fight To Appeals Court This Week With $20 Billion Tax Bill At Stake: Here's What To K

The Coca-Cola Company (NYSE:KO) is heading to the federal appeals court this week in a high-stakes tax dispute with the Internal Revenue Service that could leave the beverage giant facing up to $20 billion in taxes and interest over how it reported foreign profits.

The case will be heard by the U.S. Court of Appeals for the Eleventh Circuit in Miami on June 25.

At the center of the dispute is Coca-Cola’s use of transfer pricing, an accounting method used by multinational companies to allocate profits between parent companies and foreign subsidiaries. The core issue is whether Coca-Cola reported too much profit abroad and too little in the U.S., lowering its tax burden.

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