Reports are that MCI, formerly WorldCom Inc., is close to a settlement that would pay out $315 million to 14 states and the District of Columbia in order to settle back tax claims.

The states have accused MCI of illegally shielding billions of dollars from state taxes between 1999 and 2002 using a royalty tax plan created by Big Four firm KPMG. The states alleged that the tax plan allowed MCI to charge subsidiaries $24 billion for management expertise -- defining the payments as royalties and shielding the income from state taxes.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access