Facebook to Pay Zero Taxes, Will Receive $429 Million Tax Refund

While Obama spends a lot of time talking about how the “rich” should pay their fair share, expect Obama to mention this minor incident… never. Fair share paying doesn’t apply to Obama supporters, whether in his cabinet or outside it. It never did.

It hasn’t drawn much attention, but Facebook’s first annual earnings report contains an accounting gem: a multibillion-dollar tax deduction for the cost of executive stock options and share awards.

Even though Facebook (FB) reported $1.1 billion in pre-tax profits from U.S. operations in 2012, it will probably pay zero federal and state taxes—and even receive a federal tax refund of about $429 million

You won’t find any $429 million tax refund in Facebook’s financial statements. Indeed, the company says it had a $559 million federal tax liability in 2012. But that liability isn’t an actual payment. In a footnote, the company also said that it had a $1.03 billion “excess tax benefit” last year related to “stock option exercises and other equity awards.” That benefit is what flips the federal tax liability into a refund.

Facebook says that it anticipates reducing its tax liability in the future by an additional $2.17 billion by using further net operating loss carry-forwards that it has banked.

In entirely unrelated news, Facebook employees were the 10th highest Silicon Valley company donors to Obama.

  • http://thewildwebster.wordpress.com treii28

    “WHEN you see that that trading is not done by consent, but by compulsion. WHEN you see that in order to produce, you need permission from men who produce nothing. WHEN you see money flowing to those who deal, not in goods, but in favors. WHEN you see that men get richer by graft, and pull, then by work, and your laws don’t protect against them, but protect them against you. When you see corruption being rewarded and honesty a self sacrifice. you know that your society is is doomed,” Ayn Rand

  • http://www.adinakutnicki.com AdinaK

    The left always blows smoke about "fairness". But when one is a HUGE Obama contributor "fairness" is rendered two sheets to the wind.
    Now, this is not the place for a tax lesson, but suffice it to say, that more than creative accounting allows for the likes of FB (and others) to not only avoid taxes, but to get refunds!
    Those who are stupid enough to believe the system isn't stacked against them are operating with half a deck.
    In any case, what else can one expect when thugs are running Washington – http://adinakutnicki.com/2012/10/07/when-authenti
    Expecting economic parity from the likes of the above is to expect a rapist to care about his victims.
    Adina Kutnicki, Israel http://adinakutnicki.com/about/

  • pinnie

    they make me feel dirty….

  • Ageofreason

    Facebook is less a social networking tool than it is an information-gathering tool. A friend of the Obama administration is no friend of mine, so I have shut down my Facebook account. It is out-and-out dangerous to put photographs of family and friends, opinions, likes and dislikes, and so on, onto Facebook. In the hands of a radical, anti-liberty pack of liars and criminals like the current administration Facebook users are only paving the way to prison camps and mass detentions. Be warned.

  • Goemon

    Any chance they can get a couple thousand dollars tax profit by claiming Earned Income Credits?

  • Mary Sue

    When Obama said he wanted the Rich to pay their fair share, he obviously ONLY meant the Evil Conservative Rich!

  • Edward Cline

    Some taxpayers are more "equal" than others. I'm bettting that orders went from the White House to the IRS to "arrange" the refund and to cook its own books. This is Obama "transparency" in action.

    • JacksonPearson

      Facebook donated a hefty sum to the Obama campaign, so of course this's a payback Yet Obama insists he must tax the wealthy…or whoever the self proclaimed dictator wants.