AT&T Settles With IRS, Takes $300 Million Hit

Shares of AT&T Inc. were down 7 cents about an hour before Wall Street's close on Monday as news circulated that the company will pay $300 million to the Internal Revenue Service in the fourth quarter.

AT&T said in a regulatory filing late last Friday it has settled with the IRS over issues from its 2008 federal tax return. AT&T tried to take some deductions that are not allowed.

Still, the news wasn't all bad for AT&T. The service provider also noted on Oct. 1 it will show an $8.3 billion gain in the third quarter to cover wireless-assets depreciation. In the filing, AT&T said "the cash flow impacts of the settlement are expected to be recognized over a 15-year
period," which started two years ago.

AT&T's stock price had fallen 7 cents per share by 2:56 p.m. Eastern, down to $28.74. The operator's 52-week low is $23.78.