CAH · 10-Q · 2026Q3 · Full report
IRS Tax Disputes
CARDINAL HEALTH INC · 2026-11-05 · Importance 46 · Surprise 42 · Matches filing data
In June 2026, the IRS issued a Notice of Proposed Adjustment in Cardinal Health’s fiscal 2015–2020 audit concerning its captive insurance company and net operating loss carrybacks under the CARES Act. The IRS is challenging the deductibility of self-insurance pre-tax losses and carryback claims for fiscal 2015–2018; the dispute could result in approximately $1.4 billion of additional tax liability, plus interest, as well as additional tax expense. Cardinal Health says it believes its tax reserves are sufficient, but resolution could affect financial results and cash flow.
Key facts
- In June 2026, Cardinal Health received an IRS Notice of Proposed Adjustment challenging the tax deductibility of self-insurance pre-tax losses and related carryback claims for fiscal 2015–2018; the challenge could result in approximately $1.4 billion in additional tax liability, plus interest. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | contingent | -0.2% | In June 2026, Cardinal Health received an IRS Notice of Proposed Adjustment challenging the tax deductibility of self-insurance pre-tax… |