Interpublic: The Taxman Cometh

16 May 2003

The woes of Interpublic Group, number two in AdAge’s 2002 world rankings (after Omnicom), continue to multiply.

Not only are its accounts for the last several years under formal scrutiny by the Securities and Exchange Commission, the latest authority to come knocking at its door is the formidable Internal Revenue Service.

According to the IRS, Interpublic owes $41.5 million (€36.38m; £25.61m) in back taxes for the period 1994-96. Not so, declares an indignant IPG! Not a penny is owing to Uncle Fester, the holding company avers, and it will defend its position vigorously.

News of the IRS claim came to light in the group’s latest filing with the SEC.

Data sourced from: New York Times; additional content by WARC staff