What is the status of the CVS Health tax refund lawsuit?

CVS Health and the IRS are approaching a settlement in the company's $402 million tax refund lawsuit.

What was the CVS Health tax refund lawsuit about?

The lawsuit involved whether CVS Health could claim a domestic-manufacturing deduction for producing photographs, blister packs, advertising circulars, prescription drugs, and computer software for tax years 2014 through 2017.

What approvals are needed for the CVS Health and IRS settlement?

The agreement requires approval from IRS officials and review by the congressional Joint Committee on Taxation due to the refund amount exceeding $5 million.

Home / Business and Economy / CVS Nears $402M Tax Refund Deal With IRS

CVS Nears $402M Tax Refund Deal With IRS

10 Apr

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Summary

CVS Health is close to settling a $402 million tax refund lawsuit.
The agreement requires IRS and congressional approval.
The suit involved deductions from 2014-2017 tax years.

CVS Nears $402M Tax Refund Deal With IRS

CVS Health is approaching a resolution in its significant tax dispute with the Internal Revenue Service. The company had filed a lawsuit seeking a $402 million tax refund.

Court documents filed late Wednesday indicated that both CVS Health and the government's trial attorneys support the proposed settlement. However, final approval is pending from IRS officials. Furthermore, because the refund amount surpasses $5 million, the agreement must undergo review by the congressional Joint Committee on Taxation.

The core of the lawsuit, initiated in 2023, centered on CVS Health's eligibility for a domestic-manufacturing deduction. This deduction was sought for the production of photographs, blister packs, advertising circulars, prescription drugs, and computer software. The tax years in question span from 2014 through 2017, though the deduction itself is now defunct.

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