Microsoft Corporation (NASDAQ:MSFT) said it received Notices of Proposed Adjustment from the Internal Revenue Service (IRS) for an additional tax payment of $28.9 billion, according to an 8-K form filed Wednesday.
The company said the issue stems from its allocated profits between differing countries and jurisdictions from 2004 to 2013. Microsoft added that up to $10 billion in taxes the company claims it already paid are not reflected in the proposed adjustments made by the IRS.
As such, Microsoft intends to contest the notices through the IRS’ administrative appeal process, the company said.
“Microsoft disagrees with these proposed adjustments and will pursue an appeal within the IRS, a process expected to take several years,” the company said in its filing. “We believe we have always followed the IRS’s rules and paid the taxes we owe in the U.S. and around the world.”
Shares of Microsoft added 1.2% Wednesday to $333.42.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel