Microsoft CEO Satya Nadella arrives at federal court docket in Washington, D.C., on Oct. 2, 2023.
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Microsoft gained Notices of Proposed Adjustment from the Inner Earnings Carrier for an extra tax cost of $28.9 billion, the corporate stated in an 8-Okay submitting Wednesday.
Microsoft stated the dispute issues the corporate’s allotted earnings between international locations and jurisdictions between 2004 and 2013. It stated as much as $10 billion in taxes that the corporate has already paid don’t seem to be mirrored within the proposed changes made by means of the IRS.
Microsoft plans to contest the notices throughout the IRS’ administrative enchantment and is keen to visit judicial complaints, if essential.
“Microsoft disagrees with those proposed changes and can pursue an enchantment inside the IRS, a procedure anticipated to take a number of years,” the corporate stated in its submitting. “We consider we’ve at all times adopted the IRS’s regulations and paid the taxes we owe within the U.S. and world wide.”
Microsoft stated that as of Sept. 30, 2023, it believes its allowances for source of revenue tax contingencies are ok.