CLEVELAND—The Sherwin-Williams Co. said Monday that it will book a $75 million charge in the fourth quarter related to a settlement it has reached with the IRS over federal tax deduction claims related to the company's employee stock ownership plan.
The charge amounts to 72 cents a share and will reduce shareholders' equity by about $51.2 million in the fourth quarter, the company said.
The Internal Revenue Service challenged the tax deductions claimed by Sherwin-Williams and sought for the company to pay "substantial" excise taxes and penalties, Sherwin-William said.
The settlement resolves all the tax issues related to the company's employee stock ownership plan for the 2003-2009 tax years, Sherwin-Williams said.
Shares of Sherwin-Williams slipped 19 cents to $81.39 in aftermarket trading. The stock fell 41 cents to $81.58 during the regular trading session.