Possible liability relates to transfer pricing After reviewing Motorola Inc.’s tax returns from 1996 to 2000, the U.S. Internal Revenue Service (IRS) informed the company that it believes Motorola owes about $500 million in additional taxes, Motorola said in its second-quarter filing with the U.S. Securities and Exchange Commission (SEC).The possible tax liability stems from adjustments proposed by the IRS in June related to transfer pricing. Transfer pricing is a term that relates to the way one business unit within a corporation charges another business unit for transactions between the groups.No information was available about what specific units would be affected by the proposed adjustments. A Motorola spokeswoman did not immediately respond to an e-mail seeking comment. The proposed adjustments would have Motorola record an additional $1.4 billion in revenue over those four years, which would lead to about $500 million in tax obligations. Motorola disagrees with the proposed adjustments, and plans to dispute the issue with the IRS, it said in the filing.The $500 million in taxes, if upheld after the issue is disputed, could eventually have a material adverse effect on the company’s financial position, Motorola told the SEC. The IRS is also looking into the company’s transfer pricing in other periods, Motorola said.In midday trading on the New York Stock Exchange, the company’s stock (MOT) was down over 5 percent from Tuesday’s closing price to $14.30, amid a general decline in technology stock prices Wednesday. Technology IndustrySoftware DevelopmentSmall and Medium Business