Tax Court Orders UPS to Pay $14.5 Million

United Parcel Service of America Inc., the world’s largest package delivery company, was ordered to pay $14.5 million in penalties plus a still undetermined amount of back taxes and interest on 1983-84 income. UPS, which is in the process of going public, had challenged the government over a tax bill relating to $67.2 million of revenue from a Bermudan affiliate, which provided reinsurance to unrelated companies that sold insurance to UPS customers. The U.S. Tax Court found against the Atlanta-based company Monday. UPS still faces a decision on similar issues involving revenue for 1985 through 1990. The amount of revenue being contested for those years could total between $246 million and $259 million, according to the company’s most recent documents filed for its planned initial public offering.