Microsoft reported that the Internal Revenue Service (IRS) in the United States had informed them of an extra tax liability totaling $28.9 billion, as well as accompanying penalties and interest, spanning the tax years 2004 to 2013.The IRS notices resulted from an ongoing disagreement between Microsoft and US tax authorities, with a special emphasis on …
Microsoft reported that the Internal Revenue Service (IRS) in the United States had informed them of an extra tax liability totaling $28.9 billion, as well as accompanying penalties and interest, spanning the tax years 2004 to 2013.
The IRS notices resulted from an ongoing disagreement between Microsoft and US tax authorities, with a special emphasis on the IRS investigating how Microsoft spread its income across several nations and legal realms.
The company based in Redmond, Washington, communicated that they had subsequently modified their internal procedures to ensure that the concerns raised by the IRS were pertinent to historical practices and did not reflect their current operational methods. This adjustment was communicated through a blog post by Microsoft.
Furthermore, Microsoft stated that, in accordance with tax regulations established during previous President Donald Trump’s reign, they anticipate a potential decrease in their tax payments of up to $10 billion following the completion of the audit.
Microsoft also reiterated their disagreement with the IRS’s findings and said their intention to challenge them. The corporation established a two-step process, beginning with an internal IRS procedure and progressing to the courts if necessary.
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