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Did you claim the full amount the vendor charged or did you only claim the amounts form the invoices when you filed in those 5 years?
That answer will determine if you need to recapture that expense now that you are being reimbursed.
Of course you can amend the past years and correct the expenses claimed if you did or you can add the amount to your income for the year refunded.
If taxes are paid on it initially, and restitution is part of any settlement or judgment, that restitution is then tax-deductible.
Please advise if you need more information