appears to have a major tax headache on its hands after the Internal
Revenue Service sued the social network on Wednesday to force it to
comply with summonses related to a 2010 asset transfer.
to documents the IRS filed in San Francisco federal court, the agency
suspects Facebook and its accounting firm, Ernst & Young,
understated the value of intangible assets transferred to Ireland by
billions of dollars.
The IRS says it is seeking an order to enforce six summonses
that asked Facebook to appear at the agency’s offices in San Jose,
Calif., and to produce papers and others records. According to IRS agent
Nina Stone, Facebook failed to show up at the appointed date of June
17, and nor did it provide the documents.