IBM Sues State for Denying $33M in Tax Credits
Photo by Dennis van Zuijlekom (CC)

IBM Sues State for Denying $33M in Tax Credits

The Revenue Department will have less than three weeks to respond to the technology company.

IBM filed a lawsuit against the Minnesota Department of Revenue on Wednesday, claiming the state refused to pay out more than $33 million in research tax credits for which it qualified over a three-year period.
According to MPR, the New York-based technology company admitted to wrongly computing the credits it was due when assembling corporate tax filings between 2012 and 2014.
In those years, IBM claimed only $265,000 in research credits, although it could have claimed more based on its research spending. 
It wasn’t until 2016 when IBM first attempted to recoup some of the money it told the Revenue Department it was due. Months after submitting amended tax documents, the department denied IBM the additional credits in March, prompting the suit.
The Revenue Department declined to comment on the lawsuit, MPR said. Following standard procedure, the department will have 20 days to file a response in court.
At one point, IBM was among the 10 largest private employers in Minnesota. Its Rochester campus, at its peak, employed more than 8,000 employees, but in recent years has shrunk down to a staff of roughly a quarter that size.

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