IBM · 10-Q · 2026Q3 · Full report

IRS Tax Disputes

INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 31 · Surprise 42

The U.S. Internal Revenue Service proposed adjustments for cross-border transactions involving IBM’s 2013–2014 and 2015–2016 federal income-tax returns. IBM disagrees with the proposals, has filed IRS Appeals protests and may pursue court resolution. The IRS completed its audit of the 2017–2018 returns in the fourth quarter of 2025, but IBM also disputes certain proposed adjustments from that audit. IBM said it has provided for adjustments, interest and penalties it expects to result, while acknowledging that tax-audit outcomes remain uncertain.