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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.

The materials on the Eversheds Sutherland website are for general information purposes only and do not constitute legal advice. While reasonable care is taken to ensure accuracy, the materials may not reflect the most current legal developments. Eversheds Sutherland disclaims liability for actions taken based on the materials. Always consult a qualified lawyer for specific legal matters. To view the full disclaimer, see our Terms and Conditions or Disclaimer section in the footer. Eversheds Sutherland is a provider of legal and other services operating through various separate and distinct legal entities. For further information about these entities and Eversheds Sutherlands' structure please see the Legal Notice page of this website.

Key contacts

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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