Facebook to Get $429 Million Tax Refund Despite $1.1 Billion in U.S. Profits

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February 18, 2013

Facebook to Get $429 Million Tax Refund Despite $1.1 Billion in U.S. Profits

Citizens for Tax Justice, Facebook's Multi-Billion Dollar Tax Break: Executive-Pay Tax Break Slashes Income Taxes on Facebook-- and Other Fortune 500 Companies:

Earlier this month, the Facebook Inc. released its first ?10-K? annual financial report since going public last year. Hidden in the report?s footnotes is an amazing admission: despite $1.1 billion in U.S. profits in 2012, Facebook did not pay even a dime in federal and state income taxes.

Instead, Facebook says it will receive net tax refunds totaling $429 million. Facebook?s income tax refunds stem from the company?s use of a single tax break, the tax deductibility of executive stock options. That tax break reduced Facebook?s federal and state income taxes by $1,033 million in 2012, including refunds of earlier years? taxes of $451 million.

(Hat Tip: John Stanley.)

February 18, 2013 in Tax | Permalink

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CTJ: Facebook?s income tax refunds stem from the company?s use of a single tax break

When the whiny, sniveling leftists at the intentionally misnamed Citzens for Tax Justice claim some injustice, which is typically reserved for corporations and executives, you can be sure that they are leaving out a lot of pertinent facts. The organization, which doesn't pay taxes itself, gets the headlines while conveniently omitting that there were entirely legitimate NOL carryforwards applied by Facebook, that ordinary taxes were paid by the executives receiving the options and exceeding the company's tax savings from the deduction, and that the refunds were due to overpayments. Oh, and deductions for loss carryovers and executive compensation are normal deductions from income and not "tax breaks." The Citizens for Tax Justice is agenda driven and is either incompetent or knowingly lying.

Posted by: Woody | Feb 18, 2013 11:38:42 AM

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