IRS Says Microsoft Owes , $29 Billion in Back Taxes.<br />According to an SEC filing, the tech giant <br />owes the IRS $28.9 billion "plus penalties <br />and interest," The Verge reports.<br />Tax years 2004-2013 are reportedly <br />what Microsoft owes money for. .<br />Daniel Goff, Microsoft’s corporate <br />VP for worldwide tax and customs, <br />issued a response to the audit.<br />We have changed our corporate <br />structure and practices since the years <br />covered by the audit, and as a result, <br />the issues raised by the IRS are relevant <br />to the past but not to our current practices. , Daniel Goff, Microsoft’s corporate VP for <br />worldwide tax and customs, via blog post.<br />Not reflected in the proposed <br />adjustments are taxes paid by Microsoft <br />under the Tax Cuts and Jobs Act (TCJA), <br />which could decrease the final tax owed <br />under the audit by up to $10 billion. , Daniel Goff, Microsoft’s corporate VP for <br />worldwide tax and customs, via blog post.<br />Microsoft disagrees with these <br />proposed adjustments and will pursue <br />an appeal within the IRS, a process <br />expected to take several years. , Daniel Goff, Microsoft’s corporate VP for <br />worldwide tax and customs, via blog post.<br />The IRS has also reportedly taken issue with <br />how "Microsoft allocated profits during <br />this time period among countries and <br />jurisdictions" via cost-sharing, Goff said.<br />We strongly believe we have acted <br />in accordance with IRS rules and <br />regulations and that our position <br />is supported by case law. , Daniel Goff, Microsoft’s corporate VP for <br />worldwide tax and customs, via blog post.<br />Microsoft has paid more than $67 billion <br />in U.S. taxes since 2004, Goff said.<br />Meanwhile, Microsoft's $68 billion <br />Activision Blizzard deal is "expected to <br />close on Oct. 13," The Verge reports.
