Caterpillar, maker of enormous sandbox toys, has received some unfun news. After poking around some old tax returns, the IRS has proposed that the company pay tax increases and penalties of $1 billion. They plan to "vigorously contest" the findings in the appeals process.
This all began with some international transactions, designed by PwC, that got some extra special attention in a Senate hearing last year. This kerfuffle has also gotten the attention of the PCAOB who is looking into whether PwC's independence as CAT's auditor was compromised. We look forward to the fallout.