Microsoft is facing a $29 billion back tax bill from the Internal Revenue Service (IRS), according to a filing by the company on Wednesday.
The IRS is seeking the additional tax payment for allocated profits made by Microsoft between 2004 and 2013.
The IRS is concerned that Microsoft allocated profits among its subsidiaries in different countries and tax jurisdictions in a way that minimized its tax liability.
Microsoft has denied any wrongdoing and has said that it will appeal the IRS’s demand.
The tax dispute is expected to take several years to resolve. If Microsoft is unsuccessful in its appeal, it could be forced to pay billions of dollars in additional taxes, penalties, and interest.
