Microsoft faces $28.9bn tax demand from IRS

US tech giant Microsoft announced Wednesday that it has received a notification from the US Internal Revenue Service (IRS) for an additional tax payment of $28.9bn.

The statement indicated that the notification is related to an ongoing dispute with the IRS concerning how the company distributed its profits among different countries and regions.

In this context, the IRS reportedly demanded an additional tax payment of $28.9bn along with penalties and interest from Microsoft.

Microsoft did not agree with the IRS's request and, if necessary, would lodge an appeal with judicial authorities, said the statement.

It emphasized that Microsoft has always complied with IRS regulations and has paid taxes both in the United States and globally, with over $67 billion in taxes paid to the US since 2004.

“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 US and around the world,” it added.