United States · International tax development
US: Yum! Brands and IRS agree adjustments for 2013–2015
On 28 October 2026, Yum! Brands and the IRS filed a second stipulation of settled issues in US Tax Court proceedings, agreeing specific tax adjustments for 2013–2015 while leaving computational adjustments for later proceedings.
- Official document:
- Docket 8287-25, Document 31 — Second Stipulation of Settled Issues
- Development date:
- 2026-10-28
The agreement resolves certain issues identified in the group’s petition, rather than announcing a new tax rule. It covers depreciation recapture under Internal Revenue Code sections 1245 and 1250, transaction-cost deductions, intercompany intangible-property gain, research credits, interest expenses and other specified items. The document does not give a single final tax-liability figure.[1]
Agreed income adjustments are not additional tax
For 2013, the parties agree ordinary gain of $30,101,339 from property dispositions under sections 1245 and 1250. They also agree an increase of $7,575,933 in deferred intercompany gain from an intangible-property sale. These are taxable-income adjustments, not statements that those amounts are payable tax. The agreement separately specifies reductions as well as increases for the years concerned.[1]
Credits and carryovers remain distinct components
The stipulation also addresses research credits, taxes paid under section 901, taxes deemed paid under section 902 and capital-loss carryovers. Those agreed components should not be added together as a measure of the overall settlement: their effects belong in the relevant year’s tax computation, alongside the other stipulated items.[1]
Computations and interest are not finally determined here
Paragraph 25 leaves correlative, corresponding and computational adjustments to future computations under Tax Court Rule 155; paragraph 26 reserves the taxpayer’s right to challenge interest calculations. Rule 155 concerns the amount to be entered in the Court’s decision and does not permit new issues or a retrial. For multinational tax teams, the distinction is between agreed items and their final computational effect, not a general precedent for another group’s deductions or credits.[1][2]
Official sources
- [1] Second Stipulation of Settled Issues, Yum! Brands, Inc. and Subsidiaries v Commissioner, docket8287-25 Document31
United States Tax Court — original filed document lawfully publicly reproduced · Document date: 2026-10-28
All9pages/166extractedlines read. Filed28Oct header; numbered1–24 agreed case-specific2013–15 adjustments; paragraphs25–26 futureRule155 computations and reservedinterest challenge. Originalcourt document, not provider prose; not finaldecision/allcaseoutcomes.
- [2] United States Tax Court Rule155 — Computation by Parties for Entry of Decision
United States Tax Court · Document date: 2012-07-06
Bothpages/all44lines read. Rule155(a) agreedcomputations,(b) disagreementprocedure,(c) limits tonewissues/retrial; lastamendmentdate printedinfooter6July2012. No actual case-specific opinion/orderdate or90day deadline inferred fromstipulation.