UnitedHealth Group Contests IRS Taxable Income Increase Proposal

UnitedHealth Group is contesting a proposal from the Internal Revenue Service to significantly increase its taxable income for the 2017 through 2020 tax years. The dispute centers on transfer pricing, specifically how the company priced transactions with a foreign subsidiary to shift profits out of the United States.

The company disclosed the matter in May and August filings, stating it plans to vigorously contest the proposed adjustments. UnitedHealth has not revealed the identity of the subsidiary, the nature of the transactions, or the specific dollar amount the IRS is seeking.

While the company reported that its gross unrecognized tax benefits rose to $5.6 billion by the end of 2025, a spokesperson clarified that this total reflects all uncertain tax positions and is not the specific amount associated with this IRS dispute.