IRS Says Microsoft Owes , $29 Billion in Back Taxes.
According to an SEC filing, the tech giant
owes the IRS $28.9 billion "plus penalties
and interest," The Verge reports.
Tax years 2004-2013 are reportedly
what Microsoft owes money for. .
Daniel Goff, Microsoft’s corporate
VP for worldwide tax and customs,
issued a response to the audit.
We have changed our corporate
structure and practices since the years
covered by the audit, and as a result,
the issues raised by the IRS are relevant
to the past but not to our current practices. , Daniel Goff, Microsoft’s corporate VP for
worldwide tax and customs, via blog post.
Not reflected in the proposed
adjustments are taxes paid by Microsoft
under the Tax Cuts and Jobs Act (TCJA),
which could decrease the final tax owed
under the audit by up to $10 billion. , Daniel Goff, Microsoft’s corporate VP for
worldwide tax and customs, via blog post.
Microsoft disagrees with these
proposed adjustments and will pursue
an appeal within the IRS, a process
expected to take several years. , Daniel Goff, Microsoft’s corporate VP for
worldwide tax and customs, via blog post.
The IRS has also reportedly taken issue with
how "Microsoft allocated profits during
this time period among countries and
jurisdictions" via cost-sharing, Goff said.
We strongly believe we have acted
in accordance with IRS rules and
regulations and that our position
is supported by case law. , Daniel Goff, Microsoft’s corporate VP for
worldwide tax and customs, via blog post.
Microsoft has paid more than $67 billion
in U.S. taxes since 2004, Goff said.
Meanwhile, Microsoft's $68 billion
Activision Blizzard deal is "expected to
close on Oct. 13," The Verge reports.