AMGN · 10-Q · 2026Q2 · Full report
IRS Tax Disputes
AMGEN INC · 2026-08-05 · Importance 65 · Surprise 60 · No source text
Amgen is contesting IRS notices concerning the allocation of profits between U.S. entities and entities in the U.S. territory of Puerto Rico. The 2010–2012 notices could produce approximately $3.6 billion of additional federal tax plus interest, reduced by up to approximately $900 million of previously paid repatriation tax. The 2013–2015 notice could produce approximately $5.1 billion of additional federal tax plus interest and approximately $2.0 billion of penalties, reduced by up to approximately $2.2 billion of repatriation tax. The Tax Court trial concluded January 17, 2025, supplemental closing briefs were filed May 20, 2026, and a decision is not expected before late 2026 or early 2027; a separate IRS draft NOPA for 2016–2018 could also materially affect the financial statements.
Key facts
- The IRS Notices for years 2010–2012 seek to increase our U.S. taxable income for those years by an amount that would result in additional federal tax of approximately $3.6 billion, plus interest, reduced by up to approximately $900 million of repatriation tax previously accrued and paid. source
- The IRS Notice for years 2013–2015 seeks to increase our U.S. taxable income for those years by an amount that would result in additional federal tax of approximately $5.1 billion, plus interest and asserts penalties of approximately $2.0 billion, reduced by up to approximately $2.2 billion of repatriation tax previously accrued and paid. source
- Any additional tax for 2010–2012 would be reduced by up to approximately $ million of repatriation tax previously accrued and paid (amount redacted in filing) source
- Any additional tax for 2013–2015 would be reduced by up to approximately $2.2 billion of repatriation tax previously accrued and paid on our foreign earnings source
- We filed a petition in the U.S. Tax Court to contest the 2010–2012 and 2013–2015 Notices; the two cases were consolidated in 2022, trial began on November 4, 2024 and concluded on January 17, 2025, opening post-trial briefs filed June 13, 2025, oral argument July 16, 2025, reply briefs filed October 10, 2025, Court ordered supplemental closing briefs on March 16, 2026 which were filed on May 20, 2026, and the Company expects a decision no earlier than late 2026 or early 2027. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | contingent | -0.9% | The IRS Notice for years 2013–2015 seeks to increase our U.S. taxable income for those years by an amount that would result in additional… |
| liability | negative | contingent | -0.5% | The IRS Notices for years 2010–2012 seek to increase our U.S. taxable income for those years by an amount that would result in additional… |
| liability | positive | contingent | +0.2% | Any additional tax for 2013–2015 would be reduced by up to approximately $2.2 billion of repatriation tax previously accrued and paid on… |
| liability | positive | contingent | — | Any additional tax for 2010–2012 would be reduced by up to approximately $ million of repatriation tax previously accrued and paid (amount… |