Holy tax bill!
M&I parent seeks $12.7 million refund

March 12, 2007-- Errors in tax calculations led Marshall & Ilsley Corp. to overpay federal income taxes by more than $12.7 million in 1996 through 2001.

Now, according to a lawsuit filed in federal court, the banking business would like the money back.

M&I is suing the federal government, alleging that the IRS improperly denied the firm's request for a refund.

The banking company says it overpaid its federal taxes by $1,048,572 for tax year 1996, $1,664,971 for 1997, $2,073,908 for 1998, $2,314,334 for 1999, $3,234,334 for 2000, and $2,417,160 for 2001.

The IRS, in denying the refund request said only that "Our decision is based on provisions of the Internal Revenue laws and regulations." The agency did not provide the basis for its reasoning.

Marshall & Ilsley paid a total of about $683 million in federal taxes during the years in question, according to the suit.

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