IRS Seeks $1B From Symantec

Antivirus-software maker Symantec(SYMC Quote) late Monday said it received a notice from the Internal Revenue Service claiming that it owes roughly $1 billion in additional taxes.

The hefty tab is based on the company's $10.5 billion merger with Veritas Software in July 2005.

In a regulatory filing with the Securities and Exchange Commission, the maker of Norton antivirus products said it received a Notice of Deficiency from the IRS claiming that it owes additional taxes of approximately $900 million, plus interest and penalties, for the 2000 and 2001 tax years based on an audit of Veritas.

Symantec also said that it received a notice from the IRS regarding an unrelated audit for fiscal 2003 and 2004, proposing adjustments that amount to about $100 million, excluding penalties and interest.

The Cupertino, Calif., company said that it does not concur with the IRS' positions and intends to file a petition in protest.

After hours, shares of Symantec were recently trading down 54 cents to $15.85; they closed the regular session off 51 cents to $16.39.