The Internal Revenue Service last month launched an examination of Intel’s tax returns for the years 2001 and 2002, the chip maker said in a government filing.

Intel stated that the IRS also proposed the company make adjustments to its returns for the years 1999 and 2000 related to tax benefits for its export sales. Intel’s federal income tax liability would increase by about $600 million, plus interest, noted the company.

Intel added that it is disputing the proposed adjustments and intends to pursue the matter through IRS and judicial procedures.

“Although the final resolution of the proposed adjustments is uncertain, based on currently available information, management believes that the ultimate outcome will not have a material adverse effect on the company’s financial position, cash flows or overall trends in results of operations,” Intel stated in the filing.”