Kroger pays back taxes to IRS stemming from investment firm’s tax shelter scheme

Grocer pays back taxes

CINCINNATI — The Kroger Co. says it has paid federal taxes that it initially avoided through what turned out to be fraudulent tax shelter.

Kroger spokeswoman Meghan Glynn said Wednesday the grocery chain aided investigators and paid a settlement with the Internal Revenue Service. Terms weren’t disclosed, but prosecutors say Kroger had saved at least $64 million in taxes.

Prosecutors say the case involved sham transactions tied to tax write-offs for improvements companies made to leased buildings. They said Kroger and other clients of an investments firm weren’t aware of the fraud, revealed through IRS audits.