Facebook Will Pay No Taxes, Get Huge Refund Instead

“During the year it went public, Facebook made $1.1 billion in profits. But thanks to some nifty accounting, the company won’t be paying any federal or state taxes on it — instead, it will actually be receiving a federal tax refund of about $429 million.

Citizens for Tax Justice, a research group, predicted this would happen back when Facebook went public last year, and just released a breakdown of what Facebook pulled off in its 2012 annual report.

Essentially, because of a tax deductibility on executive stock options, options which Facebook gave out plenty over the past year, the deductible ended up actually equaling more than Facebook owed in taxes to the state and federal governments.”

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