SAN FRANCISCO The U.S. Internal Revenue Service (IRS) has filed an appeal in federal court, seeking the overturn of a 2005 U.S. Tax Court decision in favor of leading programmable logic vendor Xilinx Inc., according to a regulatory filing.
Last September, the Tax Court issued an opinion finding that Xilinx is not liable for taxes or penalties claimed by the IRS relating to transactions between Xilinx and its Irish subsidiary.
In a filing made Wednesday (Aug. 30) with the U.S. Securities and Exchange Commission, Xilinx said the IRS filed an appeal on the decision with the U.S. Court of Appeals on Aug. 25. Xilinx (San Jose, Calif.) said it intends to oppose the appeal, which it does not expect will have a material impact on its financial statements.
Several high-tech companies have drawn scrutiny from the IRS over price transfer arrangements with foreign subsidiaries in recent years. EDA vendors Cadence Design Systems Inc. and Synopsys Inc. are currently challenging IRS claims that they owe hundreds of millions of dollars for past years because of price transfer arrangements with Irish subsidiaries.