IRS launches rare audit into UnitedHealth's 2017-2020 tax filings
The Internal Revenue Service has opened an uncommon examination of UnitedHealth Group, alleging the firm underpaid taxes from 2017 through 2020 by routing earnings through an overseas subsidiary.
UnitedHealth Group disclosed in a regulatory filing that the IRS sent it audit notices in March, claiming the health insurer failed to report sufficient taxable income for a four-year span. The agency is seeking to adjust the company’s taxable base for those years and may also pursue additional liabilities for periods after 2020. Such audits of large corporations are infrequent and typically focus on internal profit-shifting mechanisms. Given UnitedHealth’s status among the world’s top revenue generators, the review could involve substantial sums.
Why it matters
A rare IRS audit of a top health insurer could lead to large tax liabilities and signals tighter enforcement on corporate profit shifting.
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