irs audits freddie mac, $750 mln tax due?

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    Will this be the trigger for the plunge at the end of Nov.??

    WASHINGTON (Reuters) - An investigation by the Internal Revenue Service (news - web sites) could require embattled mortgage finance company Freddie Mac (NYSE:FRE - news) to be liable for as much as $750 million plus interest, the company has said.

    If so, it would have "a material adverse impact" on company results, Freddie Mac said in a document posted to its Web site Sept. 25. The document was first reported by Federal Financial Analytics.

    Freddie Mac rattled investors in June when its board replaced three top executives over their roles in an accounting scandal. An independent report commissioned by the board said top management ignored accounting rules to underreport earnings by what the company later said would be $4.5 billion or more.
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