LogInMicrosoft has expressed readiness to vigorously defend its perspective, even if the case goes to court.
Image credit: Microsoft
Microsoft is preparing for a prolonged dispute with the U.S. Internal Revenue Service (IRS) regarding a substantial amount of back taxes it is alleged to owe, signaling a potentially lengthy battle ahead.
According to the Securities and Exchange Commission (SEC) filing published by Microsoft, the IRS has imposed a fine of $28.9 billion, along with penalties and interest, for taxes related to an audit conducted between 2004 and 2013. This audit was initiated as authorities started to intensify their scrutiny of major corporations' utilization of offshore tax havens.
"Microsoft disagrees with these proposed adjustments and will pursue an appeal within the IRS, a process expected to take several years. We believe we have always followed the IRS’ rules and paid the taxes we owe in the U.S. and around the world. Microsoft historically has been one of the top U.S. corporate income taxpayers. Since 2004, we have paid over $67 billion in taxes to the U.S," stated the company in its blog.
Microsoft intends to challenge the decision made by the authorities and will pursue an appeal, a process that is expected to span several years and could potentially lead to a court battle. The company has affirmed its readiness to vigorously defend its perspective in court as well.
We strongly believe we have acted in accordance with IRS rules and regulations and that our position is supported by case law. We welcome the IRS’s conclusion of its audit phase which will provide us with the opportunity to work through these issues at IRS Appeals, a separate division of the IRS charged with resolving tax disputes," says Microsoft. It is important to note that the IRS Appeals process will take several years to complete, and if we are unable to come to a direct agreement with the IRS, Microsoft will then have an opportunity to contest any unresolved issues through the courts," wrote the company.
Some more news on Microsoft, recently Phil Spencer expressed the possibility of exiting the gaming industry if Xbox Game Pass fails to demonstrate substantial growth by 2027.
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