The tax world is ready for cyclospora recalls

Curved glass office towers modern skyline commercial architecture cityCurved glass office towers modern skyline commercial architecture city

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.

Services

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

Latest Insights

  • legal updates
  • legal updates
  • guides and reports
  • legal updates

Latest News

Latest Events

  • hybrid
  • virtual | November 03, 2026
  • virtual | November 10, 2026
  • virtual | November 11, 2026
skyscrapers upward view symmetry glass facade modern corporate architecture

legal updates

October 27, 2026

Classical stone columns historic building architecture detail

legal updates

October 26, 2026

EU-flags-at-the-European-Commission-Berlaymont-building-cropped

guides and reports

October 23, 2026

An abstract image of a building

legal updates

October 21, 2026

© Eversheds Sutherland 2026. All rights reserved. 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.

Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client. For further information about these Eversheds Sutherland Entities and Eversheds Sutherlands’ structure please see the Legal Notices page of this website.