A government-commissioned report, uncovered by the New York Times, says Caterpillar has committed "deliberate" tax fraud, using Swiss and other subsidiaries to illegally shield their income from the IRS.

Last week, federal law enforcement raided Caterpillar facilities in Illinois, which the company said was related to an investigation of its Swiss subsidiary. The firm has said in securities filings that the IRS is seeking more than $2 billion in back taxes, which it is "vigorously contesting."

Why it matters: Washington is largely itching to cut corporate taxes, but, for some, the news won't make Corporate America seem deserving of tax relief.