IRS Challenges Meta Over $355 Million Tax Break Tied to Zuckerberg Pay

Meta Platforms is facing an IRS challenge in US Tax Court over roughly $355 million in research tax credits claimed for 2012 and 2013. Meta generated the credits by classifying approximately $4.1 billion of CEO Mark Zuckerberg's stock option compensation as qualified research wages, arguing he was writing code when options were granted in 2005. The IRS contends the compensation rewarded executive services between 2008 and 2010. If the court rules against Meta, the company could be forced to repay the disputed benefits with potential interest and penalties.