Oops. Chip giant Intel faces $600 million IRS liability, plus interest for years 1999 and 2000. More color:

Intel said the IRS proposed certain adjustments related to Intel's tax benefits on export sales following the examination, which occurred in August. The IRS has yet to issue a formal assessment on the matter.

Intel said it disagrees with the IRS and will use appeal procedures, if it can.

Also, Intel said the IRS could reach similar decisions in future audits that would concern business results after 2000. Intel said the IRS started last month an examination into tax returns for 2001 and 2002.

If Intel loses its battle with the IRS, the impact to the periods in question would be material, the company said, but that its overall financial position, cash flows or business trends would not be impacted.

This is likely just more financial shenanigans. Sort of a hangover from the wild late '90s, when lots of corporate America was playing fast and loose with the books.