Wastebook - Senator Tom Coburn - U.S. Senate

Wastebook 201313. Status Update: Facebook Pays No Taxes, Instead gets a Tax Refund – (IRS)$295 millionWith a status update no one will“like,” the social media giantFacebook, is likely to avoid payingtaxes in 2013, with $2.17 billion of netoperating loss carry-forwards, whileearning over a billion dollars in theUnited States last year.federal and state stock option deductions, $1.03 billion ofwhich was used to offset their total U.S. pretax profit of $1.1billion in 2012, and $429 million was refunded from its 2010and 2011 tax bills.Here is a status update no one will “like” – one of America’s largestcompanies avoided paying federal or state income taxes, and ispoised to do so again this year. In fact, they will likely receive acheck from the federal government in the form of a tax refund.Despite bringing in more than $1 billion 203 in U.S. pretax profitslast year 204 , the social-media giant Facebook reported a combined$429 million refund from their federal and state tax filings. 205Uncle Sam cut a check to Facebook for roughly $295 million in2012, according to one analysis of the company’s 10-K filing. 206Facebook’s first annual 10-K report filed with the Securities andExchange Commission for 2012 details the company’s use of theemployee stock option tax deduction, which lowered thecompany’s income taxes owed to federal and state authorities by$1.03 billion last year.By providing stock options as a major form of their compensation,to date, Facebook hasclaimed $3.2 billion 207 inThe remaining $2.17 billion in stock option tax deductions cannow be carried forward by the company and used to offsetfuture tax liabilities. This rollover, in addition to currentlyoutstanding employee stock options, may once again makethis year’s tax bill disappear.If Facebook has the same U.S. pretax profit in 2013 as last year($1.1 billion), the company will be able to zero out their taxbill for the next year. 208Taxpayers gave Facebook a gift card worthan estimated $295 million in 2012, andUncle Sam will likely cut the billion-dollarcompany another big check in 2013.26