Microsoft Faces $28.9 Bln Tax Demand from IRS

Microsoft Corporation announced Wednesday that US tax authorities have demanded $28.9 billion to cover unpaid taxes, interest, and penalties for the years between 2004 and 2013.

The tech giant has firmly rejected this demand and is determined to challenge it legally if necessary.

In a document filed with the Securities and Exchange Commission and published on Wednesday, Microsoft stated its refusal of the demand and its intent to take legal action if required.

Daniel Goff, Microsoft's Deputy General Counsel for International Tax Affairs, noted that the appeals process with the US tax authorities would span several years.

He added that if no direct agreement is reached with the tax authorities, Microsoft will have the opportunity to appeal before the courts in these pending matters.

The dispute between Microsoft and US tax authorities revolves around profits distributed by the company across multiple countries and jurisdictions during the period from 2004 to 2013.

Goff also pointed out that the U.S. tax authorities failed to consider up to $10 billion in taxes that Microsoft had already paid.

In its latest fiscal year, ending on June 30, 2023, Microsoft reported revenues totaling $212 billion, with more than $72.4 billion in net income.