Microsoft disputes the IRS’ claims and says it followed all rules and paid all the taxes it ever owed, both in the U.S. and around the world. The company also claimed that it has been one of the top U.S. corporate income taxpayers over the years, having paid over $67 billion in taxes to the government since 2004. Microsoft added that it will appeal the IRS’ decision, though the process could reportedly take “several years.”
It is worth noting that Microsoft has changed its corporate structure and practices since the years covered by the audit, meaning the inconsistencies found by the IRS do not apply to the company’s current practices. However, they are still very much relevant to the audit period, so it will be interesting to see if Microsoft will be able to get away without footing the massive tax bill as claimed by the IRS.
