Facebook does pay US taxes. That is not in dispute. But facebook does business all over the world. The question is about the proper handling of overseas income.

Facebook does pay US taxes. That is not in dispute. But facebook does business all over the world. The question is about the proper handling of overseas income. How much of that should face local tax rates vs US tax rates? It's a complex area of tax accounting and there are a lot of judgement calls to be made. This lawsuit is about one of those judgement calls.