Looks like Facebook is slipping with their tax bill and the IRS is not playing games!
According to USA Today, Facebook could get hit with a tax bill between $3 billion and $5 billion from the Internal Revenue Service that would have a huge negative impact on the social media giant that’s been connecting people all over the world since 2004.
The IRS is investigating Facebook for the tax years 2008 through 2013, according to the filing. Facebook says it received notice on July 27 that it may have understated assets by billions of dollars when it transferred them to an Irish subsidiary in 2010.
Facebook says it plans to challenge the IRS. “We do not agree with the position of the IRS and will file a petition in the United States Tax Court challenging the Notice,” Facebook wrote in the filing.
However, Facebook said, “if the IRS prevails in the assessment of additional tax due based on its position, the assessed tax, interest and penalties, if any, could have a material adverse impact on our financial position, results of operations or cash flows.”
Read more here
It’s no wonder Facebook charges an arm and a leg for ad placement….but that’s a whole other blog piece.
To be continued…