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Dr. Reddy's US Arm Fined $32,350 by IRS for Fiscal Year Misclassification
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CNBC TV18•03-10-2026, 20:51
Dr. Reddy's US Arm Fined $32,350 by IRS for Fiscal Year Misclassification
- •Dr. Reddy's Laboratories' US subsidiary, DRL Inc., received a $32,350.20 penalty from the IRS.
- •The penalty is due to a misclassification of the fiscal year reference during tax payment.
- •DRL Inc. received the final transcript from the IRS on October 2, 2026.
- •Dr. Reddy's states the penalty will not materially impact the company's financials or operations.
- •Separately, Dr. Reddy's Mexico API facility received two USFDA observations after a records assessment from July 17 to September 8, 2026.
Key Questions Answered
The US Internal Revenue Service penalised Dr Reddy's Laboratories, Inc. (DRL Inc) $32,350.20 due to a misclassification of the fiscal year reference at the time of tax payment.
According to the company's evaluation, the penalty will have no material impact on Dr Reddy's financials, operations, or other activities.
The USFDA completed a records assessment at Dr Reddy's API manufacturing facility in Mexico, issuing Form FDA 2953 with two observations at its conclusion.
