Facebook avoids taxes, gets $429M refund

Published On: Feb 18 2013 10:20:08 AM EST
Updated On: Feb 18 2013 05:17:57 AM EST

Robert Galbraith/Reuters

(CNN) -

A tax watchdog group says Facebook will pay no state or federal taxes on its profits for 2012 -- and will even get $429 million refund.

Citizens for Tax Justice says it found in Facebook's annual earnings report, the social network won't owe any taxes on its $1.1 billion 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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