ABT · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

ABBOTT LABORATORIES · 2026-07-28 · Importance 60 · Surprise 74 · In source text

First-half 2026 tax expense included $440 million related to a deferred tax asset that had generated a significant non-cash tax benefit in a prior year, compared with $300 million in the first half of 2025. Excess tax benefits from share-based compensation declined to $18 million from $84 million year over year. First-half 2026 tax expense also included approximately $60 million of net expense from prior-year tax-position resolutions, compared with a $90 million net benefit in 2025. IRS deficiency notices for 2017–2020 total approximately $1.052 billion, comprising $192 million for 2017–2018, $417 million for 2019, and $443 million for 2020.

Key facts

• Abbott received a Statutory Notice of Deficiency from the IRS for the 2019 Federal tax year in the amount of $417 million and filed a petition with the U.S. Tax Court in December 2023.
• Abbott received a SNOD from the IRS in October 2024 for the 2020 Federal tax year assessing an additional $443 million of income tax and filed a petition with the U.S. Tax Court in December 2024.
• In July 2024 Abbott received a $413 million tax assessment from the Malaysian tax authorities for the 2023 tax year; the Penang High Court upheld the assessment in October 2025 and Abbott filed an appeal with the Malaysian Court of Appeals in October 2025.
• Abbott received a SNOD from the IRS in June 2024 for the 2017 and 2018 Federal tax years in the amount of $192 million and filed a petition in September 2024 with the U.S. Tax Court.
• Taxes on earnings in the first six months of 2026 included approximately $440 million of tax expense related to a deferred tax asset that was recognized as a significant non-cash tax benefit in a prior year.

Impact estimates