ABT · 10-Q · 2026Q3 · Full report
IRS Tax Disputes
ABBOTT LABORATORIES · 2026-11-04 · Importance 13 · Surprise 6 · In source text
Abbott is contesting IRS notices of deficiency for the 2017–2020 U.S. federal tax years, primarily concerning proposed reallocations of income between U.S. entities and foreign affiliates. Abbott petitioned the U.S. Tax Court in December 2023 for the 2019 notice, in September 2024 for the 2017–2018 notices, and in December 2024 for the 2020 notice; the assessment amounts are not stated in the provided text. Abbott says it believes the proposed adjustments are without merit and that it and the IRS are in active discussions regarding disputed items in the 2017–2020 notices.
Key facts
- The 2020 IRS notice also contested a deduction that could provide an estimated $440 million cash tax benefit in a different taxable year under U.S. tax law. source
- Abbott received a $417 million IRS Statutory Notice of Deficiency for tax year 2019 in September 2023 and petitioned the U.S. Tax Court in December 2023. source
- Abbott and the IRS were in active discussions regarding disputed items in the 2017–2020 Statutory Notices of Deficiency. source
- Abbott’s December 2023 petition contests the 2019 IRS notice; Abbott says the proposed income reallocation adjustments are without merit, partly because some contradict methods agreed with the IRS in prior audit periods. source
- Abbott and the IRS are in active discussions regarding disputed items in the 2017–2020 notices. source
- Abbott received an IRS Statutory Notice of Deficiency in September 2023 for the 2019 federal tax year and petitioned the U.S. Tax Court in December 2023 to contest it. source
- Abbott received IRS Statutory Notices of Deficiency in June 2024 for the 2017 and 2018 federal tax years and filed a petition contesting them in September 2024. source
- In October 2024, Abbott received an IRS Statutory Notice of Deficiency for the 2020 federal tax year assessing additional income tax and filed a U.S. Tax Court petition contesting it in December 2024. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | contingent | +0.0% | The 2020 IRS notice also contested a deduction that could provide an estimated $440 million cash tax benefit in a different taxable year… |