IRS Seeks $9 Billion in Taxes From Facebook Over Sale of IP to Subsidiary in Ireland

A trial began this week in a tax court in San Francisco

The taxman is knocking on the door in Menlo Park, Calif., and he’s carrying a pretty big bucket.

The IRS brought Facebook to trial in a tax court in San Francisco this week, alleging that the social network owes over $9 billion in taxes for understating the value of intellectual property that it sold to a subsidiary based in Ireland in 2010, Katie Paul of Reuters reported.

Facebook’s European headquarters is in Dublin, and the corporate tax rate in Ireland is lower than the U.S.

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