Tax law is confusing. If you run your own business or have otherwise complicated tax returns, it's easy to make mistakes and end up owing the IRS a lot of money.
If the Sherwin-Williams Company was not already aware, it is finding out now that dealing with the IRS can be difficult, as many Massachusetts residents surely know. In late October, the company said that it will log a $75 million charge in the fourth quarter. The charge is linked to a settlement Sherwin-Williams reached with the IRS over federal tax deduction claims related to the company's employee stock ownership plan. According to Sherwin-Williams, the charge amounts to 72 cents per share and will lessen shareholders' equity by about $51.2 million in the fourth quarter. The IRS took issue with the tax deductions Sherwin-Williams claimed, demanding that the company pay sizable penalties and excise taxes.