05 Aug Facebook Could Owe IRS Billions Of Dollars
Facebook’s website was launched on August 4th, 2004 by Mark Zuckerberg, along with the help of some friends from Harvard. Facebook currently has over 1.5 billion users, which increases by 20% annually. There are also 1.13 billion people using the social media platform daily; therefore, Facebook is by far one of the top ranked websites worldwide.
Unfortunately for Zuckerberg and Facebook, Facebook Inc. could owe the Internal Revenue Service (IRS) billions of dollars in IRS back taxes.
Facebook is being currently investigated under an IRS exam of its federal income tax liability from 2008 to 2013. The U.S. Department of Justice filed a notice to demand Facebook to submit information about the Facebook’s Irish holding company, Facebook Ireland Holdings Limited (Facebook Ireland). The IRS has now sent a request for the seventh time writing, according to the U.S. Department of Justice:
“Facebook failed to appear on June 29, 2016, the date scheduled for compliance with the seventh summons, and did not produce the books, records, papers, and other data demanded. Facebook’s failure to comply with the seventh summons continues to this date.”
Baker McKenzie, Facebook’s representative, is yet to file a response to the lawsuit. Nevertheless, the two parties have given permission to advance before United States Magistrate Judge Laurel Beeler.