Facebook Paid No Income Tax Last Year

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Facebook paid no income tax last year, Facebook paid no tax in 2012 despite $1 billion in profit, While most of the country is getting hit with higher taxes, the social-media giant got a pass — and even got $429 million in refunds.

Taxes are said to be one of life’s inevitabilities — unless you’re Facebook (FB -0.63%), which last year not only didn’t pay a cent in federal or state income taxes but actually will receive tax refunds of $429 million, according to a new report.

The reason? Even though Facebook made a pre-tax profit of $1.06 billion last year, it benefited from a tax break: the tax deductibility of executive stock options, the report from the Citizens for Tax Justice says.

That reduced Facebook’s federal and state income taxes by $1.03 billion last year. But it also is carrying forward another $2.17 billion in additional tax-option tax breaks for use in future years, the report says. Altogether Read Full Report Here

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