Nov. 24, 4:30 P.M. -- The Internal Revenue Service has disallowed deductions claimed by National City Corp. and is seeking $200 million in back taxes and interest, the bank said in a federal filing Wednesday.
The decision, which National City said it will "vigorously contest," stems from deductions made in connection with corporate-owned life insurance programs. In a filing with the Securities and Exchange Commission, the bank said the deductions were made between 1990 and 1996.
National City also warned that should it be forced to pay all or part of the judgment amount, it would have an "adverse" effect on net income.
Shares of National City fell 4.3% or $1.125 a share on the New York Stock Exchange to $25 in trading Wednesday.