Justice Department Turns to Court to Force Facebook to Hand Over Requested Tax Documents
On Wednesday, the Internal Revenue Service sued Facebook Inc. in order to force the company to hand over documents connected to transfer of assets to Ireland Holdings Unlimited in 2010.
The investigation has been going on for more than a year and the U.S tax officials are investigating whether some of those assets under question are undervalued "by billions of dollars."
The law suit in the U.S. District Court in San Francisco was brought by the IRS as Facebook failed to respond to its recent requests. The urgency is even more as statute of limitations of the probe expires soon on July 31.
The filing says, Facebook was ordered to produce the records in a San Jose, California, court on June 17 where it "failed to appear" and did not produce the requested information.
The investigation which began in 2013 was supposedly covering the tax year 2010 tax and if it finds that the company's assets were undervalued, it could in return affect the tax liabilities of Facebook in other years too.
IRS is also asking for documents connected to Facebook's budget goals and reasons for the company to make Dublin its international headquarters.
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