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Exxon Loses $1.5 Billion Refund Bid on Overseas Ventures (1)

Aug. 3, 2022, 7:07 PMUpdated: Aug. 3, 2022, 8:41 PM

ExxonMobil Corp. lost its battle to claim a $1.5 billion tax refund from the IRS on overseas oil and gas ventures, because the ventures are considered mineral leases and not sales, the Fifth Circuit said.

The ruling is a setback for the oil and gas giant, which claimed a refund of over a billion in overpayments of taxes from 2006 to 2009, based on oil and gas exploration contracts in Qatar and Malaysia. The IRS disallowed Exxon’s refund claim in 2016 and issued more than $200 million in Section 6676 penalties on the company, determining ...