Defederating a domain from Offce 365

We are looking for ideas on getting Microsoft to defederate a domain.

We were looking to purchase Office 365 through GoDaddy. During that process, they asked if our domain pbhcpa.com had been federated previously to 365. Since we (here in IT) had made no conscious decision to do so, we said “no, it has not been federated.” We have three O365 accounts that are pbhcpa.onmicrosoft.com but pbhcpa.com was not affected by this. We purchased office 365 through GoDaddy. Our GoDaddy team got the message “pbhcpa.com has already been used to setup an Office 365 account at Microsoft. Before you can create any new users here, you must remove pbhcpa.com and any associated accounts from your previous Office 365 account.”

pbhcpa.com has already been used to setup an Office 365 account at Microsoft
We didn’t have any 365 accounts with pbhcpa.com so we opened a case with Office 365 support. The first tech found that someone at the firm, a year ago, created a Power BI account. The signup caused Office 365 to reserve our domain but never set it up as an actual tenant. This caused a shadow tenancy. The tech said this is a flaw on the Microsoft side and that he would have to escalate it. He had us log into our onmicrosoft account and run a Powershell script to defederate.

We connected to Exchange Online using https://technet.microsoft.com/library/jj984289.aspx

Then he had us run a modified version of this:

Set-Mailbox Identity -EmailAddress <NEW primary E-mail address>
Set-Mailbox identity -EmailAddresses @{Remove="<E-mail address>"}
Remove-MsolDomain -DomainName "contoso.com" -Force

The message we got was “This operation couldn’t be performed because object ‘Identity’ couldn’t be found…”

This was no surprise to use since we never created an O365 account using a pbhcpa.com account. But support told us to try it, so we did.

They are not very responsive, and some don’t seem to fully understand the issue. Any ideas on how we can progress would be appreciated.
pbhcpaIT DirectorAsked:
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Vasil Michev (MVP)Commented:
Your domain is NOT federated with O365. What the support guy probably meant is that it was used for the so-called "viral signup". You should follow the process detailed here to perform a "takeover": https://docs.microsoft.com/en-us/azure/active-directory/domains-admin-takeover
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pbhcpaIT DirectorAuthor Commented:
Thank you. Internal Admin Takeover might work for us. We will give that a try and post the results.
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pbhcpaIT DirectorAuthor Commented:
I was able to take over the domain, create another, create an account on the new domain, make it a global admin, then login and delete our domain. I also found out who it was who created the power BI account and deleted it. I assume some delay is to be expected so will check back in a few hours.
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pbhcpaIT DirectorAuthor Commented:
So that did the trick. Internal takeover was the fix. There was a bit of a delay before GoDaddy was able to see that the domain could be used. Thanks for the help.
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