IRS notifies Microsoft it owes an additional $29 billion in back taxes

Microsoft Corp. MSFT, -0.01% on Wednesday said it has received a notice from the Internal Revenue Service that it owes $28.9 billion in back taxes, plus interest and fines, for the tax years 2004 to 2013.

“As of September 30, 2023, we believe our allowances for income tax contingencies are adequate,” Microsoft MSFT, -0.01% said in an 8-K filing. The software giant said it received the notice on Sept. 26.

The dispute is over Microsoft’s allocated profits between countries and jurisdictions, according to Microsoft. The company contends as much as $10 billion in paid taxes are not accounted for in the IRS’s proposed adjustments.