US EditionIRS says Microsoft owes an additional $29 billion in back taxes
- Microsoft plans to contest a $28.9 billion back taxes request by the IRS, arguing that it followed the agency's rules and paid its owed taxes. The demand comes after a yearslong audit into Microsoft's past accounting practices, with the IRS questioning the way the company allocated profits among countries. The audit doesn't include $10 billion in taxes Microsoft paid under the 2017 Tax Cuts and Jobs Act that could potentially reduce the final bill.
- Microsoft's appeal of the IRS request is expected to go through the agency and potentially the courts, a process that could take several years. The company believes its current allowances for income tax contingencies are sufficient, and it has already changed its practices to reflect the IRS's concerns. Critics argue that companies often use transfer pricing to minimize their tax burden.
- The news of the back taxes request caused Microsoft's shares to drop slightly in aftermarket trading, falling $1.42 to $331. However, the company has paid over $67 billion in taxes to the US since 2004. Microsoft believes that any taxes owed after the audit could be reduced by up to $10 billion based on tax laws passed by Donald Trump.
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99 Articles
IRS Says Microsoft Owes $28.9 Billion in Back Taxes After Audit Dispute
Microsoft is grappling with a colossal tax bill, amounting to $28.9 billion, stemming from historical accounting practices scrutinized by the IRS. A contentious audit of almost two decades of Microsoft's tax payments focused on its accounting trick of offshoring profits to Puerto Rico.
IRS says Microsoft may owe more than $29 billion in back taxes; Microsoft disagrees
The Internal Revenue Service says Microsoft owes the U.S. Treasury $28.9 billion in back taxes, plus penalties and interest. That was revealed by the company Wednesday in a securities filing. That figure, which Microsoft disputes, stems from a long-running IRS probe into how Microsoft allocated its profits among countries and jurisdictions in the years 2004 to 2013. Critics of that practice, known as transfer pricing, argue that companies use it…
Microsoft says US has asked for $28.9 billion in audit dispute
Microsoft said on Wednesday the U.S. Internal Revenue Service (IRS) in September notified the company that it is seeking an additional tax payment of $28.9 billion, plus penalties and interest for tax years from 2004 to 2013. Microsoft said the IRS notices relate to an ongoing dispute between the company and the U.S. tax authority, which is auditing how Microsoft allocated its profit among different countries and jurisdictions.
IRS says Microsoft may owe more than $29 billion in back taxes; Microsoft disagrees
The Internal Revenue Service says Microsoft owes the U.S. Treasury $28.9 billion in back taxes, plus penalties and interest. That was revealed by the company Wednesday in a securities filing. That figure, which Microsoft disputes, stems from a long-running IRS probe into how Microsoft allocated its profits among countries and jurisdictions in the years 2004 to 2013. Critics of that practice, known as transfer pricing, argue that companies use it…
IRS says Microsoft may owe more than $29 billion in back taxes; Microsoft disagrees
The Internal Revenue Service says Microsoft owes the U.S. Treasury $28.9 billion in back taxes, plus penalties and interest. That was revealed by the company Wednesday in a securities filing. That figure, which Microsoft disputes, stems from a long-running IRS probe into how Microsoft allocated its profits among countries and jurisdictions in the years 2004 to 2013. Critics of that practice, known as transfer pricing, argue that companies use it…
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