KLTV: Facebook to pay no taxes, $429M refund

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Posted: Feb 18, 2013 9:52 AM EST Updated: Feb 18, 2013 9:52 AM EST
 
A tax watchdog report finds Facebook will pay $0 on its 2012 profits and receive a $429 million refund. (Source: CNN) A tax watchdog report finds Facebook will pay $0 on its 2012 profits and receive a $429 million refund. (Source: CNN)

(CNN) - A tax watchdog group says Facebook will pay no state or federal taxes on its profits for 2012, and will even get a $429 million refund.

Citizens for Tax Justice said it found in Facebook's annual earnings report, the social network won't owe any taxes on its $1.1 billion in pre-tax profits for last year.

That's according to a story in Bloomberg Businessweek.

The tax research group said Facebook is using stock options and other forms of compensation to investors and employees for the write off.

Analysts said the move is legal, and related to the company's decision to go public last year.

A Facebook spokeswoman contacted by Bloomberg Businessweek declined to comment on the tax break, but pointed out tax benefits were discussed on a recent analyst conference call.