BB&T Bank Hit By Income Tax Penalty (BBT)

BB&T Bank (NYSE: BBT) has been challenged by IRS over the taxes it paid between 2002 and 2007. As a result, the bank has agreed to pay a tax liability of $890 million.

This includes past taxes, penalties, and interest. BB&T Bank disclosed this payment in its annual report late last month. According to bank officials, the bank is, however, planning to challenge the IRS for restitution of money. The bank said that the payment has been made to avoid high interest charges.

The penalty is said to be related to foreign tax credit, and deductions claimed by the bank through a “deconsolidated subsidiary”.