We're used hearing this sort of thing about corporate behemoths like General Electric and CitiGroup. But now one of America's most successful new companies is doing it too.
Facebook made $1.1 billion profits in 2012 and will pay less than zero in net federal taxes, according to Citizens for Tax Justice. What's more they'll get a tax refund of $429 million.
Of course, this is perfectly legal. Facebook is exploiting a loophole widely used by Silicon Valley companies to claim a $1.03 billion tax break. Many Facebook employees receive a big chunk of their compensation in stock options. FB can count the stock options as an expense that reduces profits, in the same way that regular salaries reduce profits, and thus reduce their taxable income dramatically.
The company plans to reduce its tax liability "by an additional $2.17 billion" in subsequent years, reports Businessweek.