Bloomberg Tax
Feb. 14, 2020, 5:00 PM

Facebook Heads to Trial in Tax Dispute That Could Cost $9 Billion

Jeffery Leon
Jeffery Leon

Facebook Inc. will face off against the Internal Revenue Service in a San Francisco courtroom this week in a tax dispute that could cost the company up to $9 billion.

The social networking company is heading to the U.S. Tax Court to challenge a $1.73 million tax bill for 2010 that hinges on the value of intangible assets, such as trademarks and copyrights, that it transferred to an Irish subsidiary. The IRS claims that these assets are worth $13.8 billion—more than twice as much as Facebook’s $6.5 billion valuation.

Facebook is the latest company involved in a dispute with the ...

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