CVS Health is suing the United States, alleging the government owes it more than $400 million in tax deductions.
CVS alleged in the lawsuit, filed Nov. 21 in Rhode Island federal court, that the Internal Revenue Service denied the company's Domestic Production Activities Deduction claims filed between 2014 and 2017, resulting in the overpayment of taxes. The Domestic Production Activities Tax Deduction provides tax relief for businesses that produce goods in the U.S. rather than overseas.
The company claimed in the suit that several of its products met the qualifications for the deductions, but the IRS "denied the deductions" and refused to refund CVS for overpayments on its taxes. The products CVS said met the qualifications include photo products, certain prescription drugs, production of its weekly advertising circular, production of blister packs and the production of software products.
The U.S. has not responded to the lawsuit, according to court records.