The U.S. government may face huge claims by foreign banks after a court ordered the Internal Revenue Service to repay National Westminster Bank PLC at least $180 million in overpaid taxes, the Financial Times reported Thursday.

The British newspaper said the Court of Federal Claims in Washington upheld a claim by Natwest and the government of the United Kingdom that the IRS was in breach of the 1975 U.S.-U.K. income tax treaty.

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