2nd UPDATE: GE Calls Report On Returning Tax Refund A 'Hoax'

General Electric Co. (GE) was forced to reiterate Wednesday that it didn't receive a tax refund from the U.S. government in 2010 after media outlets wrote stories based on a fabricated press release that said the company had opted to voluntarily return its refund money.

"It is a hoax," said Anne Eisele, a GE spokesperson. "We did not receive a refund." The fake press release, which came a month after GE had to answer questions about its tax bill, said the conglomerate would return a $3.2 billion tax refund for 2010.

The Associated Press wrote a story Wednesday based on the fake press release, and that story got picked up by other news organizations, including this newswire. AP later issued an alert killing the story, and the news outlet told Dow Jones Newswires that it blamed the mistake on "editorial error."

A group called "US Uncut," which bills itself as a grassroots organization " pressuring corporate tax cheats to pay their fair share," said it created the fake GE press release, with assistance from a similar group called the "Yes Lab." A second press release from US Uncut pretended to praise GE for taking the action.

US Uncut contends on its website that it has led more than 100 actions nationwide protesting corporate tax policies. The group said it plans more than 80 such events over the course of the coming tax-day weekend.

GE shares reacted mildly to the confusion, trading in a 10-cent range until the hoax was confirmed. The stock recently slid 4 cents to $19.98.

GE's low 2010 federal income tax bill has generated substantial political controversy in recent weeks, exacerbated by GE Chief Executive Jeff Immelt's position as chairman of President Obama's jobs and competitiveness council. The group of top business leaders is charged with devising ideas that might lead to more hiring and economic growth.

GE, which files its federal income taxes between May and September each year, told Dow Jones Newswires two weeks ago that it likely will have a tax liability stemming from its $5.1 billion in income from U.S. operations last year, although it said it expects the figure to be completely offset by overpayments from prior years and other adjustments.

The company has said that its tax rate has been abnormally low in recent years largely because of losses suffered by its financial arm, GE Capital, during the financial crisis. The company noted that GE Capital lost nearly $32 billion from 2008 to 2010.

-By Bob Sechler, Dow Jones Newswires; 512-258-1690; bob.sechler@dowjones.com

--Nat Worden contributed to this article.

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