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    Facebook to pay no taxes on 2012 profits

    6:18 AM, Feb 18, 2013   |    comments
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    UNDATED (CNN) -- A tax watchdog group says Facebook will pay no state or federal taxes on its profits for 2012 and will even get a half-billion-dollar refund. 

    Citizens for Tax Justice says it found in Facebook's annual earnings report, the social network won't owe any taxes on its one-point-one-billion dollars in pre-tax profits for last year.
    That's according to a story in Bloomberg Businessweek.

    The tax research group says Facebook is using stock options and other forms of compensation to investors and employees for the write-off.

    Analysts say the move is legal, and related to the company's decision to go public last year.

    A Facebook spokeswoman contacted by Bloomberg Businessweek declined to comment on the tax break, but pointed out tax benefits were discussed on a recent analyst conference call.

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