Microsoft Claims That US Has Asked For $28.9 Billion In Audit Dispute
by upasana sarbajna Business 12 October 2023
Microsoft on Wednesday said that the United States International Revenue Service notified the company in September that it is looking forward to an additional payment of tax of $28.9 billion, in addition to penalties and other interest for the taxing years 2004 to 2013.
Microsoft said that the IRS notices are related to the ongoing tension between the company and the US tax authority, which has been auditing how Microsoft has allocated its profits between different countries and jurisdictions.
The Washington-based company Redmond said that it changed its practices so that “issues raised by the IRS are relevant to the past but not to our current practices,” as per a Microsoft blog.
Microsoft claimed that it believes that any tax they owe after auditing would fall down by up to $10 billion depending on the tax laws that were passed by the former US President Donald Trump.
The company added that it opposes the findings of the IRS and is planning to dispute them, initially in an internal IRS proceeding and then in the courts if it is at all necessary. The IRS said to Reuters that the U.S. law firm prevents it from denying or confirming if any taxpayer is audited by them.