Walgreens Boots Alliance Fined For $2.7 Billion By IRS

No one can run away from IRS tax this season, and Walgreens Boots Alliance is no exception. This multi-billion dollar company has received a hefty audit from the government. 

According to a filing with the US Securities and Exchange Commission, the pharmacy chain, the headquarters in Deerfield, was hit with a $2.7 billion bill by Internal Revenue Services (IRS). The bill was issued after the agency’s audits allegedly found a problem with the transfer pricing between 2014 and 2017. 

However, the company disagrees with the audits and plans to “vigorously defend” its position in appeals. The SEC filing said on behalf of Walgreens, “The company intends to vigorously defend its position on the transfer pricing matter through the IRS’s administrative appeals office and, if necessary, judicial proceedings and is confident in its ability to prevail on the merits.”

With this, Walgreens has joined the list of big companies like Meta, Apple, and Microsoft that are also facing transfer pricing issues.

However, the company said, “We believe that we will prevail at the conclusion of the audit.” 

Transfer Pricing is an accounting practice in which an account is maintained for exporting or importing goods and services from one division in a company to another. Since this practice is done within the company and its subsidiaries, it is often used to help lower the overall tax burden of the parent company.  

Now, with Walgreens, the IRS is seeking additional tax payments, interest, and penalties for its total compensation.

According to the reports, Walgreens unveiled a plan to reduce costs by $ 1 billion after reporting a week of fiscal 2o023, resulting in operating losses of $6.9 billion. Now, amid the losses, the company is unveiling an aggressive cost-cutting plan, including 60 clinics. 

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