March 29, 2007 – Intel reportedly has been notified by the IRS that the government agency has closed an examination of the company’s taxes from 1999-2002 and 2003-2005 regarding taxing of export sales.

As a result the chipmaker expects to reverse previously accrued taxes by about $275 million, and reduce its 2007 income tax rate forecast by about 30%, note reports by the Associated Press, AP, and Marketwatch.

Earlier this year Intel indicated it would appeal the IRS’ tax adjustment claim, which was originally notified in 2003 and could have resulted in a $2.4B hit (plus interest) on those 1999-2006 income taxes.

Intel paid about $2.0 billion in income taxes in 2006, down from $3.9 billion in 2005; its 1Q07 tax rate is expected to be about 30%, according to the company’s 4Q06 financial results.