II-VI Signals Major Tax Dispute On The Horizon

New language in latest annual report indicates the IRS is examining the company’s transfer pricing.

September 25, 2022

In its latest annual report, II-VI Incorporated (IIVI), a laser manufacturer serving the semiconductor, data center and electric vehicle industries, indicated a costly battle with the IRS is underway. In its boilerplate warning regarding taxes, the company inserted new language indicating its transfer pricing is now being scrutinized:

“This includes challenges to our intercompany transfer pricing arrangements and charges and the appropriate level of profitability for our entities.”

Over the past two years we’ve documented an IRS transfer pricing crackdown which has resulted in the following disclosures:

Related: LITE, IPGP, MKSI, COHR, NOVT

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