Caterpillar Settles Tax Dispute With IRS, Will Pay No Penalties

Caterpillar said Thursday it reached a settlement with the Internal Revenue Service that resolves a yearslong tax dispute without any penalties.

The construction equipment maker said in a regulatory filing that the settlement included the resolution of the disputed tax treatment of profits earned from 2007 to 2016 by a subsidiary in Switzerland, called Caterpillar SARL, from sales of replacement parts.