Microsoft disputes $28.9 billion IRS audit

Microsoft said on Wednesday that the US Internal Revenue Service (IRS) is seeking an additional $28.9 billion in taxes, plus penalties and interest, for the years 2004 to 2013. The dispute centers on how Microsoft allocated its profits among different countries and jurisdictions.

Microsoft said it has since changed its practices and disagrees with the IRS's findings. The company plans to dispute the bill first in an internal IRS proceeding and then later, if necessary, in courts.

The IRS is prevented by US law from confirming or denying whether it is auditing any taxpayer.

Summary:

• Microsoft is facing a $28.9 billion tax bill from the IRS.
• The dispute centers on how Microsoft allocated its profits among different countries and jurisdictions.
• Microsoft disagrees with the IRS's findings and plans to dispute the bill.
• The IRS is prevented by law from confirming or denying whether it is auditing any taxpayer.