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Facebook Paid No Income Taxes in 2012: Report

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Facebook didn't pay any federal or state income taxes last year and will receive a hefty tax refund, according to a recent report.

How did the social network manage to swing such a nice tax break?

Well, according to the Citizen for Tax Justice report the company benefited from the tax deductability of executive stock options, which reduced all of its income taxes by $1.03 billion in 2012.

The company also has another $2.17 billion in extra tax-option breaks to carry forward in the future, according to the report, which means Facebook gets to deduct a total of more than $3 billion in current and future taxes, according to the report.

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  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.

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