Tagged: irs

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Facebook tax bill over Ireland move could cost $5 billion

Facebook Inc.’s future cash flows and results could suffer a major blow if it loses a battle over new U.S. tax liabilities related to the transfer of its global operations to Ireland in 2010. The Internal Revenue Service delivered a notice of deficiency to the social media giant Wednesday for $3 billion to $5 billion, plus interest and penalties, based on the agency’s audit...

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The IRS Is Suing Facebook Over Asset Transfers in Ireland

Facebook appears to have a major tax headache on its hands after the Internal Revenue Service sued the social network on Wednesday to force it to comply with summonses related to a 2010 asset transfer. According to documents the IRS filed in San Francisco federal court, the agency suspects Facebook and its accounting firm, Ernst & Young, understated the value of intangible assets transferred...