Shortly after being slapped in August with a $246 million bill for back taxes, United Parcel Service said it was taking an additional charge against its second quarter earnings, resulting in a $854 million loss for the period that ended June 30. The action “will not have any foreseeable impact on our rates,” said UPS spokesman Ken Sternad. “It should not be a concern of our customers at all.” The Atlanta-based shipper told the Securities and Exchange Commission that it had enough cash on hand – more than $3 billion – to pay the Internal Revenue Service a potential tax liability of $1.67 billion. That would cover both the U.S. Tax Court judgment of $246 million for the 1983 and 1984 tax years, as well as taxes and interest for the tax years from 1985 to the present.
Network
