Facebook sued by the IRS for $9 billion in unpaid taxes

Illustration by Alex Castro / The Verge

Facebook is facing a lawsuit from the US Internal Revenue Service, which claims the social network owes $9 billion in unpaid taxes, according to Reuters. That lawsuit went to trial in a San Francisco court on Tuesday, and the crux of the case is a 2010 deal between Facebook and an Irish subsidiary it uses to shuffle money around internationally. The IRS alleges Facebook undervalued the intellectual property it sold to the subsidiary, thereby dodging billions in taxes.

Facebook CTO Mike Schroepfer, AR and VR chief Andrew Bosworth, and three other Facebook executives will be called to testify, Reuters reports, and Facebook expects the trial to last three to four weeks.

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