Microsoft: $28.9 billion Back Tax bill

Microsoft has been confronted with a $28.9 billion USD tax bill by the Internal Revenue Service (IRS) for the 2004 to 2013 tax years. The Internal Revenue Service (IRS) is an agency of the Department of the Treasury in the United States of America (USA), responsible for collecting US Federal taxes, resolving wrong or fraudulent tax filings, and administering select benefits programs.

The Microsoft Corporation filings to the Securities and Exchange Commission further mentions that the company received a Notice of Proposed Adjustment (NOPA) relating to Microsoft’s intercompany transfer pricing. The rulings claim that the multinational technology company diverted its supposed profits to its foreign based subsidiary, therefore, evading tax payment in the United States.

The company stated that it disagrees with the IRS’s findings and plans to appeal within the agency, a process that is expected to span several years.