Facebook did ultimately owe up to 15.5% on those profits because of a one-time tax imposed under the 2017 tax law. "Shifting international profits to Ireland -- this will be the largest source of long-term tax benefits." When it filed its tax returns, Facebook put a $7 billion value on the intangible assets in question. When it first audited Facebook's tax returns, the IRS calculated a $14 billion asset value, about double what Facebook determined. The dispute has spawned three separate federal lawsuits, along with a subsequent Tax Court case that could cost Facebook another $680 million plus interest and penalties.

Source: Wall Street Journal February 08, 2020 18:11 UTC