Microsoft Challenges IRS with $29B Tax Dispute Following Massive Audit
The Internal Revenue Service (IRS) has claimed that Microsoft owes $28.9 billion in back taxes, penalties, and interest following a 16-year audit that examined the company's profit distribution across different countries from 2004 to 2013. Microsoft disagrees with the IRS's claim and intends to appeal the decision. The audit focused on transfer pricing, a practice that allows companies to report lower profits in countries with higher taxes, minimizing their overall tax obligations. Microsoft maintains that it has complied with IRS rules and will vigorously contest the claim. If required to pay, Microsoft has the financial means to cover the amount.