Mark Zuckerberg’s once minuscule social network has now grown so large that it generated approximately $1.1 billion dollars in 2012, according to their annual report. What is surprising, is the lack of taxes owed and instead a refund to the tune of $429 million dollars.
Part of the tax break came from Facebook going public last year; for some, including the Citizens for Tax Justice, it was no surprise that Facebook wouldn’t pay a dime. The social media juggernaut is said to be cooperating to obtain further tax breaks for the future, which could equate to about $2.17 billion in the coming years.
Facebook has seen some losses throughout the years, but the absence of any federal or state taxes has sparked outrage throughout the internet and other media outlets. This news comes as politicians in Washington are in discussion about potentially lowering corporate tax rates as a pro-business incentive.
Much of the reason why Facebook is not paying taxes comes from their stock options and other compensation to employees and company investors. A tax break this large is relatively uncommon for most businesses of this size, something that Facebook wants to repeat for years to come.
If you are seeking a knowledgeable professional to assist you or your company, make sure to contact an experienced tax attorney. Tax law can be a complicated and stressful ordeal, make sure to trust someone who is dedicated to your case and has a thorough understanding of the subject matter.