The Internal Revenue Service (IRS) says Microsoft (MSFT) owes $29 billion U.S. in unpaid taxes.
Following an extensive audit, the IRS has ordered Microsoft to pay $28.9 billion U.S. in back taxes, plus interest and penalties, for the years 2004 to 2013.
In a statement, Microsoft said it plans to contest the tax agency’s calculations and findings, in court if necessary.
The large tax bill was made public in a filing with the U.S. Securities and Exchange Commission (SEC). The company said the IRS tax bill is due to the way Microsoft allocated profits among countries and jurisdictions.
In the blog post, Microsoft said that it has been working with the IRS for years to address how it allocated income and expenses for the 10-year period that began in 2004.
The company said that it has changed its corporate structure and practices since the years covered by the IRS audit.
“Microsoft historically has been one of the top U.S. corporate income taxpayers. Since 2004, we have paid over $67 billion in taxes to the U.S.,” reads the blog post.
The stock of Microsoft has risen 47% over the last 12 months and currently trades at $332.42 U.S. per share.