Abbott Laboratories Sues IRS Again Over Royalty Adjustments (1)

Abbott Laboratories sued the IRS, accusing it of wrongfully determining a nearly $443 million tax deficiency after wrongfully adjusting the US parent’s taxable royalty income by a combined $1.62 billion.

Abbott’s lawsuit, which also seeks a $10.3 million net refund for the 2020 tax year, is the latest in a series of transfer pricing actions filed by the medical devices and health-care business. Abbott challenged income adjustments for its 2019 tax year in January 2023, and filed another case concerning its 2017 and 2018 income last September.

The IRS wrongfully adjusted royalty payments upward from Abbott’s foreign manufacturing affiliates to ...