Perrigo sues IRS for $163 million in overpayments

Perrigo Co. corporate headquarters in Allegan. (Nov. 13, 2015)

**Correction: Citing the figure listed in court documents, a previous version of this article stated the amount being sought by Perrigo as more than $163 billion. However, after adding up the amounts for each year, the amount in question is actually more than $163 million.

GRAND RAPIDS, Mich. (WOOD) — Allegan-based pharmaceutical company Perrigo is suing the federal government for more than $163 million, claiming it was overtaxed.

The precise figure the drug manufacturer and its subsidiaries are demanding is $163,562,325, according to a lawsuit filed Tuesday in federal court in Grand Rapids.

The suit claims the IRS “erroneously and illegally” collected federal income taxes, penalties and interest between 2009 and 2012. Perrigo is asking for refunds of tax overpayment, penalties and interest in the following amounts:

  • $37,221,289 for 2009;
  • $61,462,133 for 2010;
  • $40,148,650 for 2011;
  • and $24,730,253 for 2012.

Perrigo noted some of the overpayments were linked to legal fees from patent infringement lawsuits. The suit says the IRS has refused to give Perrigo refunds to which the company contends it is entitled under tax laws that allow corporations to deduct such expenses as “ordinary and necessary business expenses.”