The Coca-Cola Company faces the IRS in a Miami federal appeals court today, June 25, 2026. This high-stakes dispute involves up to $20 billion in taxes.
The case centers on transfer pricing methods used for the 2007-2009 period. The IRS disputes how Coca-Cola allocated profits between its U.S. parent and foreign affiliates. Investigators question if foreign subsidiaries paid sufficient royalties for trademarks and brand formulas.
A lower tax court previously ruled in favor of the IRS. Coca-Cola faces a potential $14 billion liability. This follows $6 billion the company already paid. A legal victory would trigger a tax refund for the company.
Experts call this case the Super Bowl of transfer pricing due to its broad implications. An IRS victory may embolden the agency to target other multinational corporations. The ruling could reshape how global companies structure their future tax strategies.