IRS Says Exxon, Texaco Owe Back Taxes:...

IRS Says Exxon, Texaco Owe Back Taxes: The Internal Revenue Service has billed Exxon Corp. and Texaco Inc. for more than $2 billion in back taxes and interest, but the huge oil companies said they will challenge the claims in court. Texaco said the IRS claims the oil company owes $1.79 billion in taxes from 1979 to 1981, when it sold oil to its affiliates at below-market value. Exxon Corp. said the IRS has billed it $269 million for 1979 in connection with oil that the government of Saudi Arabia sold to Exxon and Texaco in a bid to stabilize the world crude market. Interest on the Exxon payments could double the amount of money the IRS seeks. Exxon said it had filed a petition in the U.S. Tax Court in Washington over the IRS bill. Texaco, based in White Plains, N.Y., said it also would fight the IRS claim.