IRS

Google Sues IRS Over Improperly Denied Deduction

Kick 'em again!

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Google has sued the Internal Revenue Service over a stock transaction dating back to 2004 with America Online.

The company filed the complaint in U.S. tax court on Thursday, claiming that the U.S. government owes the search giant $83.5 million. Bloomberg, which was first to report the news, spoke with a Google spokeswoman who said that the company hopes "to have it resolved soon."

Google argues that the IRS erroneously disallowed a $238.6 million deduction the company took related to the difference in value between what AOL paid to exercise a Google stock warrant and the actual value of the company's shares.