The IRS Claims Microsoft Owes $29 Billion in Back Taxes. Microsoft is Appealing





Apparently, even Microsoft has problems filing taxes. 

The Internal Revenue Service on Wednesday sent Microsoft a Notice of Proposed Adjustment for the tax years 2004 to 2013. The IRS is seeking an additional tax payment of $28.9 billion in addition to penalties and interest, according to a Securities and Exchange Commission filing from Microsoft.

Microsoft said it was appealing the decision. 

“We disagree with the proposed adjustments and will vigorously contest the NOPAs through the IRS’s administrative appeals office and, if necessary, judicial proceedings,” Daniel Goff, corporate vice president of Microsoft worldwide tax and customs, said in a statement.

Goff said the IRS’s proposed amount doesn’t reflect taxes Microsoft has paid under the the Tax Cuts and Jobs Act, which would decrease the final owed tax by up to $10 million.

Microsoft said it’s paid over $67 billion in U.S. taxes since 2004 and believes its allowances for income tax contingencies are adequate as of September 30, 2023. 

Just days after Microsoft received the notices, the company closed its $69 billion Activision Blizzard deal, the largest gaming acquisition in the U.S. to date. The deal adds hit franchises from Activision Blizzard and King to the Xbox. 

The news was reported earlier by CNBC.

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