KHC · 10-Q · 2026Q2 · Full report

IRS Transfer Pricing Investigation

Kraft Heinz Co · 2026-08-05 · Importance 44 · Surprise 60

The Internal Revenue Service is examining Kraft Heinz’s income taxes for 2018 through 2022, including transfer-pricing arrangements with foreign subsidiaries. Notices of Proposed Adjustment could increase U.S. federal taxable income and tax liabilities for each examination year, and the IRS has also asserted penalties for 2018 through 2022; the filing’s extracted amounts are not provided. Kraft Heinz disputes the IRS positions, has recorded no reserves, and intends to pursue administrative and judicial remedies. The Company acknowledged that required payment of additional taxes, interest, or penalties could materially affect results of operations and cash flows.

Key facts

• The company is currently under examination by the IRS for income taxes for the years 2018 through 2022 and received Notices of Proposed Adjustment in 2023 (years 2018 and 2019) and in 2025 (years 2020 through 2022). source
• The company states it has not recorded any reserves related to the IRS transfer pricing NOPAs and believes final adjudication will not have a material impact but the ultimate outcome is uncertain. source