Facebook could be in trouble with the US Internal Revenue Service. The Justice Department filed a lawsuit on Wednesday, hoping compel Facebook to turn over information regarding any transfer of global assets to an Irish-based holding company on its 2010 tax return. The IRS is investigating whether Facebook undervalued transfer assets by billions of dollars, according to Law.com. Image: Gil C/Shutterstock.com
According to the revenue agent in charge of the audit, Facebook failed to comply with a summons previously set for June 17 in downtown San Francisco. As of Wednesday, the company had yet to comply despite giving a statement to Law.com saying, "Facebook complies with all applicable rules and regulations in the countries where we operate." We reached out to Facebook for further comment but had not heard back at time of writing.
The IRS notes that the statute of limitation for investigating this matter expires on July 31. Facebook would either need to agree to a extend the statute or face a very large audit adjustment, according to CNN Money.