Microsoft revealed in a filing with the SEC that the IRS has determined it owes $28.9 billion, along with penalties and interest, in unpaid taxes. The audit, covering the period of 2004 to 2013, focused on the company’s alleged transfer of $39 billion in profits to Puerto Rico through an intellectual property scheme. Despite losing a lawsuit to force the IRS to release audit records, Microsoft believes its tax bill should be reduced by $10 billion due to taxes paid under the Trump-era Tax Cuts and Jobs Act. The dispute is expected to enter a prolonged appeals process.