Federated to Negotiate Tax Claim: The Federated...

Federated to Negotiate Tax Claim: The Federated and Allied department store chains said they intend to negotiate more than $500 million in additional tax claims filed by the Internal Revenue Service. Parent company Federated Stores Inc. said the claims were based on an IRS audit for 1984 to 1988. The audit was part of Federated’s Chapter 11 bankruptcy reorganization. The claims involve issues that include the tax deductibility of merger and takeover expenses related to Campeau Corp.’s acquisitions of Federated Department Stores Inc. and Allied Stores Corp.