{"id":2064023,"date":"2023-10-11T19:14:09","date_gmt":"2023-10-11T23:14:09","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/microsoft-says-it-received-irs-bill-for-nearly-29-billion-in-back-taxes-plans-appeal\/"},"modified":"2023-10-11T19:17:39","modified_gmt":"2023-10-11T23:17:39","slug":"microsoft-says-it-received-irs-bill-for-nearly-29-billion-in-back-taxes-plans-appeal","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/microsoft-says-it-received-irs-bill-for-nearly-29-billion-in-back-taxes-plans-appeal\/","title":{"rendered":"Microsoft received a $29 billion IRS bill for unpaid taxes and intends to appeal."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmicrosoft-says-it-received-irs-bill-for-nearly-29-billion-in-back-taxes-plans-appeal%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2064023&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Microsoft to Appeal IRS&#8217;s Attempt to Collect $28.9 Billion in Back Taxes<\/h2>\n<p>Microsoft has revealed that the IRS is seeking \u2064to collect a staggering $28.9 billion in back taxes. However, the\u200b tech giant is not backing down and plans to appeal the decision, a process that could span several years.<\/p>\n<p>The IRS conducted an extensive audit of Microsoft&#8217;s finances from 2004 to 2013, \u200bultimately \u200cdetermining that \u200bthe company owes the additional tax amount, along with penalties and interest. Daniel Goff, Microsoft&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/microsoft-targeted-by-hacking-group-backed-by-chinese-government\/\" title=\"Microsoft Targeted By Hacking Group Backed By Chinese Government\">corporate vice president<\/a> of worldwide tax and customs, expressed the company&#8217;s disagreement with the IRS&#8217;s conclusion.<\/p>\n<p>Despite working closely with the IRS\u200c on the audit for nearly a decade,\u200d Microsoft maintains that it has \u200dalways followed tax regulations and paid its dues both in \u200cthe U.S.\u200d and globally. The \u200bcompany also highlighted that \u200dthe <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/this-can-be-an-attack-on-all-women-sen-tuberville-noises-off-on-biden-admins-transgender-policies\/\" title=\"\u2018This CAN BE AN Attack \u2026 On All Women\u2019: Sen. Tuberville Noises Off On Biden Admin\u2019s Transgender Policies\">proposed adjustments<\/a> \u2064do not take \u200binto account\u200c the taxes paid under the Tax Cuts and \u200cJobs Act, potentially reducing the final \u2062amount owed by up\u200b to\u200c $10 billion.<\/p>\n<p>Throughout the years, Microsoft has been a significant contributor to the IRS, having paid over $67 billion in taxes since 2004. However, the audit primarily revolves around the allocation of profits across different\u2063 countries and jurisdictions, a practice known as \u2063transfer pricing.<\/p>\n<p>Microsoft emphasized that the IRS has <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/in-depth-gop-embraces-ballot-harvesting-but-some-republicans-have-misgivings\/\" title=\"GOP embraces ballot harvesting, but some Republicans have concerns.\">established regulations<\/a> allowing companies \u2063to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/microsoft-says-it-received-irs-bill-for-nearly-29-billion-in-back-taxes-plans-appeal\/\" title=\"Microsoft received a  billion IRS bill for unpaid taxes and intends to appeal.\">utilize cost-sharing arrangements<\/a> for transfer pricing, which\u200b aligns with the global nature \u2063of their businesses. The\u2064 company&#8217;s subsidiaries, which shared in the costs of developing intellectual property, were entitled\u200d to the related profits under these regulations.<\/p>\n<p>While the IRS \u200bdeclined to comment on the\u200c case, \u2062Microsoft remains steadfast in its \u2063belief that it has adhered to the rules and fulfilled its\u2062 tax obligations. The battle between the tech giant and the IRS is\u2064 far from over, and the \u200boutcome of the appeal process will be closely \u200bwatched.<\/p>\n<p> <\/p>\n<h2> How does Microsoft argue that\u200c they have complied with\u200c tax regulations and paid their dues?<\/h2>\n<p><span>  \u200d Microsoft is set to appeal against the\u200c Internal \u2064Revenue Service&#8217;s (IRS) attempt\u2063 to collect\u200d $28.9 \u2062billion in back\u2062 taxes. The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/google-plans-to-upgrade-search-with-ai-chat-video-clips-wsj\/\" title=\"Google to enhance search with AI chat and video clips, reports WSJ.\">tech giant plans<\/a> to contest the decision, a process\u200c that could last several years.<\/p>\n<p>The IRS conducted an exhaustive audit of Microsoft&#8217;s finances\u200d from 2004 to 2013, ultimately determining that the company owed the \u200cadditional tax,\u200d as well as penalties and interest. Daniel Goff, \u200cMicrosoft&#8217;s \u200bcorporate vice president of worldwide tax and customs, expressed the company&#8217;s disagreement with\u200d the IRS&#8217;s conclusion.<\/p>\n<p>Despite close \u200ccooperation with the \u2062IRS during the audit for nearly a decade, Microsoft\u200c maintains that it\u200d has always complied with tax regulations and paid\u200d its dues both \u2063in the US and globally. The company also pointed out\u200d that the proposed adjustments fail to take into account the taxes paid under the Tax Cuts and Jobs Act, \u200cwhich could potentially reduce \u200bthe final amount\u2062 owed by up to \u200c$10 billion.<\/p>\n<p>Over the years, Microsoft has been a\u200d significant contributor to the IRS, having paid over $67 billion in taxes \u200csince 2004. However, the focus \u2063of the\u200d audit \u2063primarily revolves around the allocation of profits \u2062across different countries \u200cand \u200djurisdictions, specifically in relation\u200b to transfer pricing.<\/p>\n<p>Microsoft emphasized that the IRS has \u2062established regulations that allow companies to utilize cost-sharing arrangements\u2064 for transfer pricing, which aligns with\u200d the global \u200bnature of their businesses. \u200cThe company&#8217;s subsidiaries, \u200bwhich \u2063shared in the costs of developing intellectual property, were \u2063entitled \u200dto the related profits under these regulations.<\/p>\n<p>While the IRS declined \u200cto comment on the case, Microsoft remains confident that it has adhered \u200cto the rules\u2064 and fulfilled its tax \u2063obligations. The ongoing battle between the tech giant \u200cand the IRS is far from over, and the outcome of \u2062the appeal process will\u2064 be\u200c closely watched.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>back taxes. Microsoft plans to appeal the decision, which could prolong the process for several years. The IRS conducted an audit on Microsoft&#8217;s finances from 2004 to 2013, leading to the determination of the substantial tax debt.<\/p>\n","protected":false},"author":1,"featured_media":2064024,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2064023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2064023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2064023"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2064023\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2064024"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2064023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2064023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2064023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}