IRS claims Microsoft (MSFT) owes $28.9 billion in back taxes
Microsoft disagrees with the IRS and intends to contest the claim in court if it must.
It would appear that Microsoft is set to contend with the US Internal Revenue Service (IRS) over some issues in its tax payments. This week, Microsoft reported that the IRS claims it owes $28.9 billion USD in back taxes. The company also reported that it disagrees with the claim and intends to contest it, even if that ends up with Microsoft going to court over the matter, though it will likely go through the IRS’s administrative appeal in a process which could last years.
Microsoft reported the claim against it by the IRS in an 8K filing to the SEC on October 11, 2023. According to the filing, Microsoft received multiple Notices of Proposed Adjustment from the IRS for a total additional tax payment of around $28.9 million. Reportedly, the disputes are related to the company’s allocated profits in various countries and jurisdictions, ranging between 2004 and 2013. Microsoft intends to contest these claims, with one of its rebuttals being the claim that around $10 billion in taxes that it supposedly paid are not reflected in the IRS’s Notices of Proposed Adjustments.
Source: Google
With Microsoft’s intention to contest the claims of back taxes still owed, the company shared that it will go through the IRS’s administrative appeal system, but will not shy away from going to court if necessary, as shared in its filings:
With the matter contested and quite a chunk of money on the line, it will remain to be seen how the IRS responds to the contest and how far Microsoft is forced to take the dispute, especially as it still aims to close the deal to acquire Activision Blizzard. Stay tuned for further updates.
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replyTJ Denzer posted a new article, IRS claims Microsoft (MSFT) owes $28.9 billion in back taxes
