(Provides response from IRS)
By Stephen Nellis
Oct 11 (Reuters) – Microsoft mentioned on Wednesday the U.S. Inner Income Service (IRS) in September notified the corporate that it’s in search of an extra tax fee of $28.9 billion, plus penalties and curiosity for tax years from 2004 to 2013.
Microsoft mentioned the IRS notices relate to an ongoing dispute between the corporate and the U.S. tax authority, which is auditing how Microsoft allotted its revenue amongst completely different international locations and jurisdictions.
The Redmond, Washington-based firm mentioned it has since modified its practices in order that “points raised by the IRS are related to the previous however to not our present practices,” in keeping with a Microsoft weblog.
Microsoft mentioned it believes that any taxes owed after the audit can be lowered by as much as $10 billion primarily based on tax legal guidelines handed by former President Donald Trump.
The corporate mentioned it disagrees with the IRS’s findings and plans to dispute them, first in an inner IRS continuing after which later, if needed, in courts.
The IRS advised Reuters it’s prevented by U.S. regulation from confirming or denying whether or not it’s auditing any taxpayer. (Reporting by Samrhitha Arunasalam in Bengaluru and Stephen Nellis in San Francisco Enhancing by Deepa Babington and Matthew Lewis)
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