IBM sues Minnesota over $33 million in denied tax credits
IBM is seeking more than $33 million from the state of Minnesota over research tax credits the company says it was due.
In a lawsuit filed Wednesday against the Minnesota Department of Revenue, the New York-based technology giant contends that it qualified for more research tax credits than it was granted for a span of a few years.
IBM acknowledged it made the initial error when computing the credits as part of corporate tax filings.
From tax years 2012 to 2014, IBM said it claimed only $265,000 in research credits despite being eligible for many times that based on expenses it had.
The company sought to recover the extra money in amended tax documents filed in 2016 but was denied additional credits in a department order issued this March.
IBM's lawsuit in Ramsey County District Court seeks a larger refund for the years in question plus interest.
The Revenue Department, which declined to comment on the lawsuit, has 20 days to file a response in court.
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