The tax world is ready for cyclospora recalls

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The tax world is ready for cyclospora recalls

August 03, 2026

United States
United States
United States
Tax Notes Today - Federal (subscription required)

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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ellenmcelroy@eversheds-sutherland.com

Ellen McElroy

Partner

Washington, DC, United States

michaelresnick@eversheds-sutherland.com

Michael D. Resnick

Counsel

Washington, DC, United States

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