BP to claim $10 billion U.S. tax credit for Gulf oil spill costs

[babylonsister]

BP to claim $10 billion U.S. tax credit for Gulf oil spill costs

By Russ Brit | Market Watch


LOS ANGELES — Oil giant BP PLC will reduce its contribution to U.S. coffers by roughly $10 billion due to a tax credit the company is claiming it incurred from the Gulf of Mexico oil spill.

BP said Tuesday that it is incurring a charge of $32.2 billion from the Gulf response, and as such, it is claiming a $9.9 billion taxation credit.

Asked in a conference call Tuesday about whether the company has discussed the tax credit with President Barack Obama's administration, outgoing BP Chief Executive Tony Hayward said, "We have followed the IRS regulations as they're currently written."

White House officials weren't immediately available for comment. The Internal Revenue Service said it's not allowed under federal law to discuss individual taxpayer issues.

But the issue may raise red flags among federal officials, particularly in light of recent efforts by various other entities that have settled with the U.S.

One notable example is Goldman Sachs Group Inc., which agreed last month not to seek deductions for $535 million in penalties as part of its settlement with the Securities and Exchange Commission. The SEC had sued Goldman Sachs, alleging that it hid critical information from investors in mortgage securities.

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http://www.mcclatchydc.com/2010/07/27/98224/bp-to-claim-10-billion-us-tax.html

[Recursion]

1. They're about to write down a $15 billion loss for the quarter

It would surprise me if their tax burden is very heavy this year.