KROGER, WAL-MART WIN TAX COURT RULINGS

WASHINGTON -- Kroger Co., Cincinnati, and Wal-Mart Stores, Bentonville, Ark., were victorious here in separate challenges to the way they calculate inventory shrinkage. ich was attempting to collect back taxes.The IRS argued that retailers should be required to do regular inventory audits in calculating shrink. However, the Tax Court ruled the retailers could continue to estimate those losses based

WASHINGTON -- Kroger Co., Cincinnati, and Wal-Mart Stores, Bentonville, Ark., were victorious here in separate challenges to the way they calculate inventory shrinkage.

ich was attempting to collect back taxes.

The IRS argued that retailers should be required to do regular inventory audits in calculating shrink. However, the Tax Court ruled the retailers could continue to estimate those losses based on past experience, a common retail practice.

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