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Microsoft owes $29 billion in back taxes, says IRS

Illustration of the Microsoft wordmark on a green background
Illustration: The Verge

The Internal Revenue Service (IRS) has informed Microsoft that the company owes back taxes of $28.9 billion “plus penalties and interest” for the tax years 2004 through 2013, according to an SEC filing.

Microsoft’s corporate VP for worldwide tax and customs Daniel Goff responded to the audit in a blog post, and says the company has changed its corporate structure and practices since the years covered by the audit. “The issues raised by the IRS are relevant to the past but not to our current practices,” Goff states.

The IRS’s proposed adjustments don’t reflect the amounts the company paid under the Tax Cuts and Jobs Act, according to Goff, who claims that could decrease the final tax owed by up to $10 billion. Additionally, Microsoft…

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