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+ 10 years of interest and penalties, compounding.
by blitzar 3y ago
+ 10 years of interest and penalties, compounding.
- littlestymaar 3y agoFrom the article: > Microsoft owes the Internal Revenue Service (IRS) $28.9 billion in back taxes, not including penalties and interest
- cma 3y agoThere was close to a zero interest rate during all that time, or does IRS use something way above normal for their rate?
- nkozyra 3y agoBack taxes have a baseline rate that grows at certain increments of lateness but is ultimately capped. I don't think it's in any way tied to the base or prime rate.
- littlestymaar 3y agoBased on what happens in my country, it could be both penalty + some interest rates based on the reference rate (which definitely haven't been zero for the past two years btw) but not equal to it.
- blitzar 3y agoGenerally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. https://www.irs.gov/newsroom/interest-rates-increase-for-the-fourth-quarter-2023 https://www.irs.gov/newsroom/interest-rates-increase-for-the...
- blitzar 3y agoMy bad first scan read (probably wrong now I look at it) was; The IRS says Microsoft owes an additional $28.9 billion -- in tax for 2004 to 2013 plus penalties and interest For an SEC filing they really should be declaring the actual value of their liability - the interest on the bill is going to be $10bn+