Politics

Valero sues US for $400 million, claims IRS won’t refund them for overpaying in taxes

Valero Energy Corp sued the federal government on Tuesday in San Antonio, Texas. In federal court, Valero demanded a refund of about $400 million in federal income taxes the refiner says it overpaid.

The San Antonio-based company claims the Internal Revenue Service (IRS) has wrongly refused to return funds it collected for the tax years 2005 to 2008. This is after Valero corrected the tax filings that led to its alleged overpayment. Valero in its complaint says it initially mistakenly included as taxable, gross income the value of Bush-era tax credits it received for the 2005 to 2010 tax years for alcohol fuel and biodiesel mixtures it blended.

Valero subsequently filed refund claims for 2005 to 2008, but the IRS denied them, the company said. Valero had a net-operating loss in 2009 and 2010 and as a result, they claimed for tax refunds for those years were carried back to the tax years 2006 and 2008, it said. The Department of Justice and the IRS have not responded to any requests for a comment at this stage. Valero’s lawyer Steven Otillar of White & Case also did not respond to any requests for comments.

Valero believes that it is entitled to refunds of $31 million for 2005, $129 million for 2006, $62 million for 2007 and $184 million for 2008. It also asks for statutory interest. The case is Valero Energy Corp and Subsidiaries v. United States, U.S. District Court for the Western District of Texas, No. 5:21-cv-00922.

ARTICLE: PAUL MURDOCH 

MANAGING EDITOR: CARSON CHOATE

PHOTO CREDITS: TOP CLASS ACTIONS

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Paul, 37, is from Scotland in the UK, but currently lives and works in Bangkok. Paul has worked in different industries such as telemarketing, retail, hospitality, farming, insurance, and teaching, where he works now. He teaches at an all-girls High School in Bangkok. “It’s a lot of work, but I love my job.” Paul has an active interest in politics. His reason for writing for FBA is to offer people the facts and allow them to make up their own minds. Whilst he believes opinion columns have their place, it is also important that people can have accurate news with no bias.

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