Facebook Inc. is likely to be audited by many countries if the social network loses its August 2019 trial in U.S. Tax Court over assets it transferred to Ireland.
An IRS win could lead to a pay-up of more than $5 billion and fuel other tax authorities to audit the Facebook’s intercompany pricing arrangements.
“If you’re thinking about cost, what Facebook has done is gone through administrative audit and responded to about 200 requests through the IRS,” Larry Sannicandro, an associate at McCarter & English LLP in Newark, NJ, told Bloomberg Tax.