Facebook may be making more than $1 billion in profits after going public last year, but the social media network won’t be seeing any of it going to Uncle Sam. In fact, Uncle Sam is paying Facebook $429 million in tax refunds thanks to the company’s generosity in giving executives stock options.
The Citizens for Tax Justice pressure group released its report on Facebook stating that the company is using a single tax break which allows a deduction of executive tax option to avoid paying its taxes and garner a huge refund. Don’t think that 2012 will be the only year Facebook will get a big wet kiss from Uncle Sam. The company will bring “forward another $2.17 billion for use in future years,” which means that Uncle Sam will keep paying Facebook for years to come.
NMR: Facebook Will Pay No Taxes, Get $429 Million Refund For 2012