Microsoft To Appeal About $29 Bln Tax Claim From U.S. IRS

(RTTNews) - Microsoft Corp. (MSFT) will appeal a decision by the US Internal Revenue Service or IRS that the software maker owes at least US$28.9 billion in taxes from 2004 to 2013.

Microsoft disclosed in a regulatory filing that on September 26 it received notices of proposed adjustment from the IRS for the tax years 2004 to 2013. The primary issues in the notices relate to intercompany transfer pricing. The IRS is seeking an additional tax payment of $28.9 billion plus penalties and interest.

The company said it disagreed with the proposed adjustments and will vigorously contest the notices through the IRS's administrative appeals office and, if necessary, judicial proceedings.

The company does not expect a final resolution of these issues in the next 12 months.