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IRS Sifts Through Uber’s Old Tax Returns

Uber Technologies may be in trouble for tax-related matters.

CNBC reports that the Internal Revenue Service of the United States is currently auditing the ride-hailing company’s taxes for 2013 and 2014. Uber says its tax benefits could be reduced by $141 million or even more within the next year or so.

Last Thursday, the company released a statement saying that other state and foreign tax authorities were also taking a peek at its previous years’ taxes. This is because of investigations related to “transfer pricing positions,” a term that describes “the common multinational practice of charging for services between wholly-owned businesses in different countries or jurisdictions to reduce the tax it pays.”

Uber says, “Although the timing of the resolution and/or closure of the audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months.”

Although the company’s shares have been falling for quite some time now, it still remains ahead of its biggest competitor, Lyft. In fact, the latter has fallen quite a lot since March, totaling to about a third of its initial value earlier this year.

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