Facebook and IRS Agree to $498 Million Instagram Income Boost

June 21, 2023, 10:39 PM UTC

Facebook Inc. and the IRS agreed to increase the company’s royalties for transferring Instagram property to a Facebook entity in Ireland by about $498 million in a Wednesday settlement obtained by Bloomberg Law.

The parties also agreed the company wouldn’t owe accuracy-related tax penalties on the increase and that other Facebook income should be increased by more than $1.5 million. The settlement in the US Tax Court litigation doesn’t resolve the remaining issues in the agency’s tax bill to the company for the 2011 and 2013 tax years.

The company initially sued ...

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