12:27 PM EDT, 06/05/2025 (MT Newswires) -- Yum! Brands ( YUM ) has filed a complaint in US Tax Court against Internal Revenue Service, alleging that the agency wrongly adjusted the company's 2013-15 taxes to impose tax and penalties of $4 billion on the company's 2014 reorganization, Bloomberg reported Thursday.

In the suit filed on Wednesday, the company is contending that those transactions should be tax-free. The company claims that the reorganizations of its divisions involved exchanges of notes for stock, which are non-taxable.

The IRS disagreed with the company's stance based on its audit of Yum's 2013-2015 tax years, the news report said.

Yum was informed by the IRS in 2022 regarding underpayment of tax by $2.1 billion and penalties of $418 million. Yum also owes interest on the IRS's assessments totaling $1.5 billion, the report said.

Yum and IRS didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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