UnitedHealth faces IRS fight over foreign subsidiary transactions and potential tax bill

UnitedHealth Group is embroiled in a transfer pricing dispute with the IRS, which could potentially result in a substantial tax increase for the healthcare company. The controversy, which covers the tax years 2017 through 2020, revolves around the pricing of transactions involving a foreign subsidiary. The IRS has proposed adjustments that would raise the company's taxable income for each year, and could pursue similar changes for future years as well.

UnitedHealth has not disclosed the specific transactions under review or the amount of additional tax sought by the IRS, but has stated that it disagrees with the proposed adjustments and plans to contest them. The case highlights the ongoing scrutiny from the IRS regarding how US-based multinationals allocate profits between domestic operations and overseas subsidiaries.

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