Abbott Sues IRS For $24.3 Million Refund in Foreign Royalty Case

Abbott Laboratories Inc. sued the IRS in US Tax Court, claiming a $24.3 million refund for its 2017 and 2018 tax years because the government improperly determined that royalties paid to Abbott’s US headquarters by foreign affiliates are taxable income.

The IRS shouldn’t have found $191 million in federal income tax deficiencies over royalties paid to Abbott by several of its foreign affiliates, the health care research and pharmaceutical company said in a petition filed Sept. 19. Abbott said the government didn’t properly account for the taxes it paid in other countries.

The government conducted other errors with the company’s ...