(Seth Fiegerman) – Pursuant to an ongoing IRS investigation, the U.S. Justice Department filed a lawsuit directing Facebook to comply with said investigation, which imposes penalty on the company’s primary assets.
There is no exact amount of penalty yet, however, said penalty particularly refers to its transfer of assets to an Irish branch back in 2010.
Facebook’s assets compose mainly of online platform and marketing intangibles that run its largest social networking website. They are described as hardly unquantifiable.
The company said the IRS tax penalty could reach up to $5 billion, exclusive of interest. Accordingly, it will have a “material adverse impact” on the company’s financial standing.