The tax world is ready for cyclospora recalls

When product recalls make headlines, the tax consequences often receive less attention.

In a recent Tax Notes article, Eversheds Sutherland attorneys Ellen McElroy and Michael Resnick discuss the tax considerations businesses may face in connection with the recent cyclospora-related lettuce recalls, including the treatment of inventory losses, customer refunds, recall-related expenses, and potential litigation costs. Their insights highlight how inventory accounting and economic performance rules can affect the timing and recovery of these costs.

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