Facebook is set to be sued for $9 billion by the Internal Revenue Service, which accuses the company of undervaluing intellectual property it transferred to Ireland in an effort to avoid compliance with American tax rules.
The IRS is accusing Facebook of significantly undervaluing the cost of intellectual property it transferred to an Irish component of its company in 2010. They’ll make their argument before a San Francisco judge later this month.
Facebook expects the litigation to be settled in a matter of weeks. It’s probable that the proceedings will end with a settlement in which the Silicon Valley social media behemoth will agree to pay a portion of the back taxes it owes as a result of the 2010 tax haven move. Leading employees of the company, including Chief Technology Officer Mike Schroepfer, are expected to testify in the proceedings.
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