IRS Wants Microsoft to Pay Nearly $30 Billion More Tax

The IRS told Microsoft it owes $28.9 billion more in taxes because it incorrectly allocated profits among its subsidiaries, which Microsoft ‘vigorously’ denies.

Microsoft signage at the company's headquarters in Redmond, Wash., on Jan. 18, 2023. Matt Mills McKnight/Reuters

The IRS has put Microsoft on notice that it intends to collect an additional $28.9 billion in back taxes, prompting the company to cry foul, according to regulatory filings.

Microsoft disclosed in an 8-K filing on Oct. 11 that the IRS issued several notices of proposed adjustment (NOPA) for the tax years between 2004 and 2013, totaling $28.9 billion plus penalties and interest.