Shares of international industrial machinery company Caterpillar (CAT) - Get Report were slightly down Wednesday morning after a report from the New York Times showed that a report commissioned by the federal government had accused it of tax fraud.
Caterpillar dipped 1.55% to $94.44. The company has said that it has not viewed the government report and has refused to comment further.
Federal agents raided Caterpillar's corporate headquarters on Mar. 2. At the time the company said that the warrant was focused on collecting documents and electronic information and was most likely connected to an IRS investigation of parts transactions carried out by its Swiss affiliate.
Caterpillar has said in Securities and Exchange Commission filings that the IRS has proposed a $2 billion charge for back taxes and penalties. The New York Times stated that the government-commissioned report concluded that Caterpillar deliberately broke U.S. tax law and financial reporting rules when it failed to pay taxes on earnings from the Swiss affiliate.
No charges have been filed against Caterpillar.
"We believe that the relevant transactions complied with applicable tax laws and did not violate judicial doctrines," the company said about the IRS investigation in a February SEC filing.