(CNN) - A tax watchdog group says Facebook will pay no state or federal taxes on its profits for 2012 and will even get a $429 million refund.
Citizens for Tax Justice says it found in Facebook's annual earnings report, the social network won't owe any taxes on its $1.1 billion in pre-tax profits for last year, according to a story in Bloomberg Businessweek.
The tax research group says Facebook is using stock options and other forms of compensation to investors and employees for the write-off.
Analysts say the move is legal, and related to the company's decision to go public last year.
A Facebook spokeswoman contacted by Bloomberg Businessweek declined to comment on the tax break, but pointed out tax benefits were discussed on a recent analyst conference call.
CNN