Microsoft Faces $28.9 Billion Tax Bill as IRS Demands Payment

The dispute centres around the company's accounting practices over the past two decades.
19 October 2023
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Microsoft faces a massive tax bill of $28.9 billion (USD)  along with penalties and interest, as notified by the U.S. Internal Revenue Service (IRS). 

The amount stems from a long audit conducted by the IRS for the period of 2004 to 2013, examining Microsoft's accounting practices over nearly two decades. The company acknowledges the figure arrived at by the IRS. 

However, Microsoft claims to have made changes to its practices, rendering the issues raised by the IRS irrelevant to its current operations. 

Moreover, the company expects a reduction of up to $10 billion in taxes owed based on tax laws introduced by former President Donald Trump. 

Disagreeing with the IRS's conclusions, Microsoft intends to challenge them through an internal IRS proceeding and potentially in court if necessary. 

The IRS, bound by U.S. law, cannot confirm or deny any ongoing audits.

- CyberBeat


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