AMGN · 10-Q · 2026Q3 · Full report
IRS Tax Disputes
AMGEN INC · 2026-11-04 · Importance 50 · Surprise 24 · No source text
The IRS disputes the allocation of profits between Amgen entities in the United States and Puerto Rico for tax years 2010–2015, seeking approximately $3.6 billion and $5.1 billion in additional federal tax, respectively, plus interest; the 2013–2015 notice also asserts approximately $2.0 billion in penalties. The cases were consolidated in the U.S. Tax Court, where trial concluded January 17, 2025, and supplemental closing briefs were filed May 20, 2026; Amgen expects a decision no earlier than late 2026 or early 2027. The IRS is also examining 2016–2018 and issued draft proposed adjustments and penalties in 2026, which could materially affect the financial statements if sustained in full; its audit of 2019–2022 began in the second quarter of 2026. Amgen disagrees with the positions and intends to contest them, while noting that final resolution is unlikely within 12 months and that payments could exceed accrued amounts and materially adversely affect its financial statements.
Key facts
- The IRS's 2010–2012 Notices seek to increase Amgen's U.S. taxable income by an amount that would result in approximately $3.6 billion of additional federal tax, plus interest. source
- The IRS's 2013–2015 Notice seeks approximately $5.1 billion of additional federal tax, plus interest, and asserts approximately $2.0 billion in penalties. source
- Additional tax imposed for 2010–2012 could be reduced by up to approximately $1.8 billion of repatriation tax previously accrued and paid on Amgen's foreign earnings. source
- Additional tax imposed for 2013–2015 could be reduced by up to approximately $2.2 billion of repatriation tax previously accrued and paid on Amgen's foreign earnings. source
- The consolidated IRS tax dispute trial began November 4, 2024, concluded January 17, 2025, and the U.S. Tax Court decision is expected no earlier than late 2026 or early 2027. source
- Amgen expects a decision from the U.S. Tax Court on its 2010–2012 and 2013–2015 IRS disputes no earlier than late 2026 or early 2027. source
- The IRS's 2010–2012 notices propose adjustments that would increase Amgen's U.S. taxable income and result in approximately $3.6 billion of additional federal tax plus interest; up to approximately $900 million of repatriation tax previously accrued and paid could reduce additional tax. source
- The IRS's 2013–2015 notice proposes adjustments that would result in approximately $5.1 billion of additional federal tax plus interest and asserts approximately $2.0 billion of penalties; up to approximately $2.2 billion of repatriation tax previously accrued and paid could reduce additional tax. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | contingent | -0.6% | The IRS's 2013–2015 notice proposes adjustments that would result in approximately $5.1 billion of additional federal tax plus interest… |
| liability | negative | contingent | -0.6% | The IRS's 2013–2015 Notice seeks approximately $5.1 billion of additional federal tax, plus interest, and asserts approximately $2.0… |
| liability | negative | contingent | -0.5% | The IRS's 2010–2012 notices propose adjustments that would increase Amgen's U.S. taxable income and result in approximately $3.6 billion… |
| liability | negative | contingent | -0.3% | The IRS's 2010–2012 Notices seek to increase Amgen's U.S. taxable income by an amount that would result in approximately $3.6 billion of… |
| liability | positive | contingent | +0.2% | Additional tax imposed for 2013–2015 could be reduced by up to approximately $2.2 billion of repatriation tax previously accrued and paid… |
| liability | negative | contingent | -0.2% | The IRS's 2013–2015 notice proposes adjustments that would result in approximately $5.1 billion of additional federal tax plus interest… |
| liability | positive | contingent | +0.1% | Additional tax imposed for 2010–2012 could be reduced by up to approximately $1.8 billion of repatriation tax previously accrued and paid… |