SAN FRANCISCO (03/30/2000) - Intel Corp. announced today that U.S. government tax body the Internal Revenue Service (IRS) has closed its examination of the chip maker's tax returns up to and including 1998.
The chip maker said it has reached a resolution with the IRS on a number of issues, including adjustments related to inter-company allocation of profits, according to an Intel statement released today. Intel expects to reduce previously accrued taxes for the current quarter, reducing the quarter's tax provision by US$600 million, or about 17 cents per share, the vendor said.
Intel said the agreement doesn't change its previous tax rate guidance. The company still expects its tax rate for 2000 to be 31.7 percent, excluding the $600 million accrual reversal and acquisition-related costs from prior and future mergers and acquisitions.
The chip giant is due to release its first-quarter earnings after the close of market on April 18. Current estimates call for Intel to post a profit of 69 cents a share, up from 57 cents a share last year, according to analysts polled by First Call/Thomson Financial.
Intel, in Santa Clara, California, can be reached at +1-408-987-8080 or http://www.intel.com/.