Sen. Wyden Quizzes Merck About Its Taxes

Sen. Ron Wyden (D-Ore.), chairman of the powerful Senate Finance Committee, has sent a letter to Merck, demanding details of the company’s tax practices — the latest in his ongoing efforts to investigate drugmakers’ use of offshoring practices to reduce their taxable income.

The senator noted that the company makes more than 46 percent of its sales in the U.S., but it reported only 14 percent of its pretax income in the U.S. for tax year 2021.

Sen Wyden demanded several documents, including IRS form 8975 for the past three years, which provide a country-by-country account of the company’s pretax earnings.

Merck has until April 15 to respond to the senator’s letter.