In a regulatory filing with the U.S. Securities and Exchange Commission (SEC), Microsoft Corporation (Nasdaq: MSFT) disclosed that it has received Notices of Proposed Adjustment (NOPAs) from the Internal Revenue Service (IRS) for the tax years 2004 to 2013, dated September 26, 2023. The primary focus of these NOPAs is on intercompany transfer pricing. The IRS is seeking an additional tax payment of $28.9 billion, in addition to penalties and interest.

Microsoft expressed its belief that, as of September 30, 2023, its allowances for income tax contingencies are sufficient. The tech giant also noted its disagreement with the proposed adjustments and confirmed its intention to vigorously contest the NOPAs, utilizing the IRS's administrative appeals process and, if necessary, pursuing legal proceedings.

It's important to note that Microsoft does not foresee a final resolution of these tax issues within the next 12 months. Based on the current information available, the company does not anticipate a significant increase or decrease in its tax contingencies for these matters in the coming year.

$MSFT was trading at $331.31 in after-hours, showing a decrease of $1.11 (-0.33%)

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