Uber’s taxes under IRS review
Wedbush managing director Daniel Ives reacts to Uber’s first earnings report and explains why investors should avoid Tesla.
Ride-sharing service Uber is being audited by the Internal Revenue Service, in addition to examinations in foreign jurisdictions where it operates, saying that some tax charges may change.
In recent disclosures, including a 10-Q filing on Tuesday, Uber said the U.S. tax agency is examining its 2013 and 2014 taxes.
The company also said its taxes in a number of foreign jurisdictions, including Brazil, Mexico, the Netherlands, Singapore and India, were still open – including tax years dating back to 2010.
Tax charges may change, it said, while adding that it believed it has enough reserved to cover any additional liability. The timing of the resolution, the company said, is “highly uncertain.”
A spokesperson for Uber declined to comment. A spokesperson for the IRS did not return FOX Business’ request for comment.
The examination was first disclosed in filings in April, ahead of its initial public offering.
Additionally, Uber said its gross unrecognized tax benefits, resulting from losses it carries forward, could be reduced by $141 million.
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The company released its first quarterly report as a public company at the end of last month, where it reported a net loss of about $1 billion in the first quarter – which is what Wall Street had expected. Quarterly revenue jumped 20 percent.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UBER | UBER TECHNOLOGIES INC. | 80.46 | +1.30 | +1.64% |
Shares are largely unchanged over the past month.