Amgen Says IRS Seeks $7.1 Billion in Back Taxes, Penalties
Bill is for taxes and penalties that IRS says the biotechnology company owes for the years 2013 to 2015
Amgen Inc. has been hit with a bill for more than $7 billion in unpaid taxes and penalties from the Internal Revenue Service, the company said Wednesday, the latest salvo in the company’s dispute over back taxes related to its operations in Puerto Rico.
Amgen said it received a notice from the IRS on April 18 that seeks to increase Amgen’s federal taxes by $5.1 billion, plus interest, and $2 billion in penalties for the years 2013 to 2015.
The new bill comes on top of the $3.6 billion in back taxes plus interest that the biotechnology company disclosed last August that the IRS was seeking for the years 2010 to 2012. Amgen said it had filed a petition in U.S. Tax Court to dispute those charges.
Amgen said the IRS adjustments to its tax bill are without merit. “Amgen will vigorously contest the adjustments and penalties proposed by the Internal Revenue Service” for the 2010 to 2015,” the company said. “Amgen is confident in its position in the dispute.”
Amgen, of Thousand Oaks, Calif., had $25.97 billion in global sales last year. The IRS claims relate to the way Amgen allocates profits between Puerto Rico, where it has significant manufacturing operations, and the U.S. mainland, where it is based.
Puerto Rico is a U.S. territory, but is considered a foreign jurisdiction for tax purposes, and Amgen receives tax incentive grants for profits it earns on the island, the company has said.
The company has had a manufacturing presence in Puerto Rico for more than 30 years and employs 2,400 highly skilled staff members there