Microsoft plans to contest a US Internal Revenue Service request for an additional $28.9 billion in back taxes for the years 2004 to 2013, the company said in a securities filing Wednesday. In particular, the agency took issue with how the company “allocated profits … among countries and jurisdictions,” Microsoft said in the filing. “The IRS says Microsoft owes an additional $28.9 billion in tax for 2004 to 2013, plus penalties and interest,” the company said. It noted that the IRS’s determination is not final and does not include up to $10 billion in taxes Microsoft paid under the 2017 Tax Cuts and Jobs Act that could reduce its final bill. The company said it plans to appeal the IRS request, a process that will likely take several years.

Source: CNN October 12, 2023 05:53 UTC