© D.L. Crumbley
Tax Issues: Freddie Mac
The company used a so-called linked swaps to shift at least $420 million into the future.
Internal report said the linked swaps had minimal business justifications other than the shifting of operating earnings.
Company’s recent disclosure: potential additional tax liability as much as $750 million, plus interest.
Source: Dawn Kopecki and J.D. Mckinnon, “IRS Probes Tax Issues at Freddie Mac,” Wall Street Journal, October 22, 2003, p.A-6.