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Altria Gets $1 Billion Tax Refund

Part of it will go to Kraft.
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(MO) - Get Altria Group Inc Report

will collect $1 billion from the government based on the outcome of a four-year tax review by the Internal Revenue Service.

About $337 million of the payment will be reimbursed to Altria's 84% subsidiary,



. The cigarette giant said the noncash benefits are the result of the reversal of previously recorded tax reserves.

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As a result of the decision, Altria raised its 2006 earnings guidance to $5.25 to $5.35 a share, up from $4.85 to $4.95 a share. The new guidance also incorporates a 5-cent charge related to Kraft's

sale of Milk-Bone


Del Monte



Kraft raised its full-year earnings guidance by 17 cents to a range of $1.55 to $1.60 a share.

Altria shares gained 73 cents, or 1%, to $74.60. Kraft added 21 cents, or 0.7%, to $30.35.