The IRS is requesting around $28.9 billion in taxes for the period from 2004 to 2013. The subject is related to transfer pricing issues to shift profits from a higher taxable jurisdiction to a lower taxed one, such as Puerto Rico. Daniel Goff, Microsoft Corporate Vice President, Worldwide Tax and Customs, has wrote a blog post to explain further the situation and how they have worked for over a decade on this item with the IRS and the adjustment does not include taxes paid under the Tax Cuts and Jobs Act of 2017 (Trump’s IRS tax code change) which would generate a final outstanding debt of around $10 billion. Microsoft will appeal this notice of proposed adjustment.
Link CNBC – IRS says Microsoft owes an additional $29 billion in back taxes
Link Daniel Goff – An update on our IRS tax audit
Link Bloomberg – Microsoft Plans to Contest IRS Claim It Owes $28.9 Billion in Back Taxes
