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Facebook Defriends Taxes

Facebook Defriends Taxes

Sends Friend Request to Massive Tax Refund

If you’re on Facebook, one of the privileges you get is to pick and choose your friends list. Every so often, after going on a friending spree, you can filter out that list and defriend people you barely know.

The tax attorneys at Facebook are doing just that when it comes to the company’s tax bill.

After earning more than $1 billion in profit in 2012, the behemoth social network isn’t paying a single dime in taxes to Uncle Sam. In fact, the company is slated to receive tax refunds totaling $429 million.

That’s about 43 cents for every Facebook user.

Just how Facebook was able to avoid all taxes while earning $1 billion in profit is the stuff that makes tax attorneys giggle.

By taking advantage of the tax deductibility of executive stock options, Facebook was able to reduce its total tax burden by just over $1 billion.

The company also plans on taking advantage of other tax breaks linked to the initial public offering of its stock. That’ll give it another $2.1 billion in tax breaks to use over the next several years.

Needless to say, Facebook can reject a few friend requests sent by by some IRS agents.

But average taxpayers don’t have to be the size of Facebook to avoid IRS fees and balances. By working with a tax professional, companies and individuals of all sizes and in all tax brackets can help resolve their tax troubles and possibly settle their back tax debt on favorable terms.

Which is something everyone’s wallet will ‘like’.

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