Replies to post #37223 on Meta Platforms Inc (META)

[Getitgogone]

There is no "FINE" and their is no 5 Billion dollars owed by Facebook

In my opinion all this hoopla over the IRS is just a nice little jab at facebook because there were a lot of whales that missed the boat and crapped their pants when they saw the blow out earnings and the stock spike to 134.00 immediately after reporting.

The whales were probably short going into earnings ....

Here's what was said by Facebook
"The internet company said in a quarterly securities filing on Thursday that the IRS had issued it a “statutory notice of deficiency” a day earlier saying Facebook owes more taxes for 2010. Facebook said that while the notice applies only to that year, if the IRS takes a similar position for other years it is investigating and prevails in court, it could result in an additional federal tax liability of between $3 billion and $5 billion, plus any interest or penalties."

So first of all the IRS has to win for 2010 ... then on to the other years and if anyone knows anything about the IRS and the US TAX COURT the process could take many months ,especially when you consider appeals on rulings and arguments being made throughout the entire process;I have a little knowledge about it as I took the IRS to US TAX COURT because they owed me money and I won my case!! It is a slow process and the amount of cash revenues rolling through FB anyway 5 billion over some time would be like a nat on a cows ask!!

Just sayin .... I think all this is way overblown for some "downside money making" for some "upside money making" by the whales ... when they flip their positions and go Long

I expect a rapid rise to 135.00 once they're done playin...

We'll see ... it is the stock market so who knows for sure ...just what I'm thinking

[eastunder]

Facebook Faces Potential $3 Billion to $5 Billion IRS Bill (FB)

http://www.investopedia.com/articles/markets/072916/facebook-faces-potential-3-billion-5-billion-irs-bill-fb.asp?partner=YahooSA

Facebook Inc. (FB), coming off a strong showing in second quarter, disclosed it could get hit with a $3 billion to $5 billion bill from the Internal Revenue Service as part of an ongoing inquiry into how the social media giant accounts for assets it shifted offshore. (See also: Facebook Stock Soars on Q2 Earnings, Rev Beat.)

Facebook disclosed the potential tax bill in a Securities and Exchange Commission filing late Thursday, saying the fine could have a material impact on its business. The potential tax hit comes amid an ongoing investigation by the IRS into to its offshore revenue recognition.

In a petition that was filed earlier in the month (See link below ), the IRS contended Facebook missed a June deadline to provide the government agency information about its offshore tax strategies. The agency want’s Facebook to provide information from the 2010 tax year, which was the year Facebook moved global rights for some of its assets including intellectual property to Ireland from the U.S. and Canada. The IRS contends Facebook didn’t account for the property value of the assets.

The investigation on the part of the IRS has been going on since 2013. Facebook said it received a notice on July 27 that it may have understated assets by billions of dollars. The company plans to challenge the IRS saying in the filing, “we do not agree with the position of the IRS and will file a petition in the United States Tax Court challenging the Notice. If the IRS prevails in the assessment of additional tax due based on its position, the assessed tax, interest and penalties, if any, could have a material adverse impact on our financial position, results of operations or cash flows." The move on the part by the IRS showcases the government agency’s new enforcement tactics to go after bigger companies that earn money from IP.

IRS PETITION LINK:

USA vs FB

Declaration of Nina Wu Stone in support of petition to enforce
Internal Revenue Service Summonses

Filed 7/06/16

http://pdfserver.amlaw.com/ca/StoneDeclaration.pdf