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On Mar 2, law enforcement officials raided Caterpillars corporate headquarters as well its two facilities in Peoria, IL to execute a search and seizure warrant. The agencies involved in the search included the Internal Revenue Service's (IRS) criminal investigation unit, the U.S. Department of Commerce Office of Export Enforcement and the Federal Deposit Insurance Corp.'s Office of Inspector General. Soon after, Caterpillar issued a statement announcing the search was regarding, among other things, export filings that relate to business with its Swiss subsidiary, CSARL. The matter first came to light in the companys Form 10-K filed on Feb 17, 2015 and updated in its recent 10-K. Notably, two years ago, the IRS had notified the company that it owed over $2 billion in taxes for the years 2010 to 2012 by shifting profits to the affiliate in Switzerland. Caterrpillar remains firm on the ground that it has not broken any federal tax laws. The present incident comes at an inopportune moment as President Trump recently reaffirmed his plans to pump $1 trillion of new infrastructure spending into the U.S. economy to fix America's crumbling infrastructure. The prospect of gigantic infrastructure spending is welcome news for infrastructure stocks. As expected, Caterpillar will play a major role in the national infrastructure plan and its shares thus gained 2% following the announcement.