Facebook Mostly Loses on Intangibles Valuation in Tax Court (2)

The IRS used an acceptable method to assess the value of intangible assets assigned to Meta Platforms Inc.'s Irish subsidiary, but used the wrong inputs to calculate the resulting US tax bill for the Facebook parent, the US Tax Court held Thursday.

Judge Cary Douglas Pugh said the agency’s application of the income method in a way that increased the Facebook parent company’s taxable income for 2010 was “consistent with regulation.” In so holding, the court rejected Facebook’s arguments that the Treasury Department regulations on which the IRS relied were invalid.

Facebook and the IRS have been battling over the ...