Facebook, Cirrus Could Land $11B In Future Tax Relief

Law360, New York (November 5, 2013, 2:27 PM EST) -- Facebook Inc., Cirrus Logic Inc. and others have amassed enough stock option tax breaks to avoid paying federal income taxes on a collective $11.4 billion in future earnings, according to a report released Tuesday by watchdog group Citizens for Tax Justice.

Corporations can take a tax deduction when their employees exercise their stock options and buy company stock, so the stock option tax break has become an emerging corporate tax-avoidance tool, according to the CTJ.

The danger is that companies typically issue stock options before they...
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