Boston, MA 11/25/2014 (wallstreetpr) – Microsoft Corporation (NASDAQ:MSFT) filed a lawsuit against the Internal Revenue Service (IRS). The software company complained that the government agency was unresponsive in supplying the requested information about a firm contracted to review its transfer pricing practice. Microsoft sought contract information pertaining to IRS dealings with Quinn Emanuel Urquhart & Sullivan, a law firm that specializes in litigation, according to a Reuters article.
The law firm will look into how Microsoft Corporation (NASDAQ:MSFT) books sales among its subsidiaries. IRS will pay Quinn Emanuel Urquhart & Sullivan more than $2 million for the examination. The review will capture tax returns in the years 2004 to 2009.
While Microsoft Corporation (NASDAQ:MSFT) is not opposed to the examination of its transfer pricing practice, the company has raised concerns about why IRS is not surrendering some crucial information. It sought details about Quinn Emanuel Urquhart & Sullivan, but the agency has not turned in the same, which it finds unusual. As such, Microsoft has sought the intervention of the court over the matter.
According to a statement by Microsoft, agencies such as IRS, which are funded by the citizens, have an obligation to comply with the Freedom of Information Act. Neither the IRS nor the hired law firm has commented on the lawsuit filed by Microsoft.
Microsoft Corporation (NASDAQ:MSFT) had nearly $93 billion in profits held in offshore accounts as of late June this year, according to a Bloomberg report. The report further stated that the company would owe Uncle Sam nearly $30 billion if it brought that money into the country.
In the recent times, IRS has been scrutinizing tech companies over the transfer pricing dealings. Microsoft and Amazon.com, Inc. (NASDAQ:AMZN) have particularly featured in IRS investigations. Multinational companies are said to use transfer pricing to reduce their global tax burden.
Black Friday deals from Microsoft
Meanwhile, Microsoft Corporation (NASDAQ:MSFT) is having some great Black Friday offers. The company has announced discounts on various devices that it offers, especially the Surface tablets whose prices have been reduced by as much as 4150.
Microsoft Corporation (NASDAQ:MSFT) has broken down in yesterday’s trading session and closed below 20-Day EMA of $47.76. The stock has resistance near $48.5 and $49 while support is near $46.8 and $46 in near term.