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U.s. Tax Agency Investigates Facebook's Ireland Asset Transfer


Ron Burgundy
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File photo of Facebook CEO Mark Zuckerberg during a town hall at Facebook's headquarters in Menlo Park, CaliforniaThe U.S. Internal Revenue Service (IRS) said Facebook Inc may have understated the value of intellectual property it transferred to Ireland by "billions of dollars", unfairly cutting its tax bill in the process, according to court papers. The U.S. Justice Department filed a lawsuit on Wednesday in federal court in San Francisco seeking to enforce IRS summonses served on Facebook and to force the world's largest social network to produce various documents as part of the probe. The tax authority is examining whether Facebook understated its U.S. income by selling rights to an Irish subsidiary too cheaply.




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