Microsoft is suing the IRS after the agency fails to provide information

Credit: Brian Turner

Microsoft has filed suit against the IRS after the agency failed to provide documentation requested by the company using the 'freedom of information' process. Microsoft said that the IRS has not provided the complete contract for Quinn Emanuel Urquhart & Sullivan who was hired by the IRS to review how Microsoft books sales between subsidiaries.

The IRS paid Quinn Emanuel Urquhart & Sullivan more than $2 million for its review of Microsoft's tax returns from 2004 to 2009. Microsoft has requested documentation pertaining to that review and the IRS has failed to deliver some of the documentation requested, which has resulted in the suit against the agency.

Microsoft filed the documentation in the U.S. District Court, District of Columbia, and the case is called "Microsoft Corp vs. Internal Revenue Service, 14-1982". While we do not know exactly what Microsoft is looking for in these documents, it is within their right to request the contract and other paperwork as the investigation was conducted against their tax returns.

We will be curious to see if Microsoft finds any 'wrong-doing' in the contract, or if the company is simply snooping around to see what the original intent was for the investigation. The last time we heard about the IRS and Microsoft crossing paths, is when the agency said that they would have to pay Microsoft for extended Windows XP support.

Until the case goes to trial or is resolved outside of the courts, we don't know much else about Microsoft's reasoning but will keep you updated as we hear more.

[Update] Microsoft provided Neowin the following comment on the suit:

“Government agencies, funded by citizens, have an obligation of transparency under the Freedom of Information Act. The IRS has failed to meet the deadline to respond to a valid FOIA request, and we’re simply asking a Court to ensure that the IRS meets its obligations.”

Source: Reuters

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