No taxes, big refund from write-offs for Facebook - WFLA News Channel 8

No taxes, big refund from write-offs for Facebook

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A tax watchdog group says Facebook will pay no state or federal taxes on its profits for 20-12 -- and will even get a half-billion-dollar refund.

Citizens for Tax Justice says it reviewed Facebook's annual earnings report, and discovered the social network will not owe any taxes on its one-point-one-billion dollars in pre-tax profits for last year.

That's according to a story in Bloomberg Businessweek.

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

Analysts say 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.

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