One equivalent of methanol-d 4 reacts with the iridium(III)-carbonato-NHC complex [Ir(Cp*)(NHC-theo)(O 2 CO)] [1] containing an N-heterocyclic carbene ligand with an N-tethered C8-iodotheophylline group (NHC-theo) to form the iridium(III) chelate complex [Ir(Cp*)(theophyllinato^NHC)I] [2] that bears a theophyllinato^NHC chelate ligand, an iodo ligand, and the pentamethylcyclopentadienyl ligand (Cp*). The methanol-d 4 solvent is oxidized to formaldehyde-d 2 that was identified by a detailed LC−MS study using the 2,4-dinitrophenylhydrazine (DNPH) method. A plausible rearrangement involving the unusual oxidative addition of the C8−I bond of the theophylline group to an iridium(III) center to give a seven-coordinate iridium(V) intermediate is supported by density functional theory calculations.