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Microsoft\u2019s corporate VP for worldwide tax and customs Daniel Goff responded to the audit in a blog post<\/a>, and says the company has changed its corporate structure and practices since the years covered by the audit. \u201cThe issues raised by the IRS are relevant to the past but not to our current practices,\u201d Goff states.<\/p>\n<\/div>\n The IRS\u2019s proposed adjustments don\u2019t reflect the amounts the company paid under the Tax Cuts and Jobs Act, according to Goff, who claims that could decrease the final tax owed by up to $10 billion. Additionally, Microsoft claims the IRS disagrees with the way Microsoft allocated profits internationally through an arrangement of transfer prices called cost-sharing.<\/p>\n<\/div>\n Microsoft says it disagrees with the IRS\u2019s \u201cproposed adjustments\u201d and will \u201cvigorously contest\u201d them. In the same blog, Microsoft says it doesn\u2019t expect the dispute to be resolved in the next 12 months. Separately, the company recently reigned victorious over the FTC, which failed to secure a preliminary injunction against Microsoft\u2019s plan to acquire Activision Blizzard for $68.7 billion \u2014 a deal expected to close<\/a> on October 13th.<\/p>\n<\/div>\n