Business

Bank of America says federal government owes it $200M

A Bank of America automated teller machine in Woburn, Mass., is shown in this July 2016 photo.
A Bank of America automated teller machine in Woburn, Mass., is shown in this July 2016 photo. AP

You think you’ve got problems with the IRS?

Bank of America is suing the U.S. government for $199.8 million the bank says it’s owed in interest it paid to the Internal Revenue Service.

The suit, filed Wednesday in federal court in the Western District of North Carolina, centers on interest the Charlotte-based bank said it was charged on federal income tax overpayments and underpayments. The bank says the complaint involves payments made by a variety of predecessors and companies it acquired going back to the 1980s, including Merrill Lynch and FleetBoston Financial.

Bank of America claims the IRS erred in how it calculated interest on overpayments and underpayments. Although the bank has received certain refunds for Merrill Lynch, the IRS has disallowed some other claims, the lawsuit says.

Bank of America spokesman Jerry Dubrowski declined to comment. IRS spokesman Anthony Burke said the agency generally does not comment on pending litigation.

In its suit, Bank of America says it also filed a related action in federal claims court in August 2016. The bank said it is seeking about $15 million in that case.

In Charlotte, Bank of America employs about 15,000.

Staff researcher Maria David contributed.

Deon Roberts: 704-358-5248, @DeonERoberts

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