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IRS files suit against Facebook to produce documents

The U.S. Internal Revenue Service filed suit against socialmedia giant FacebookInc. to compel the company to produce documents for a federalinvestigation.

The suit, filed July 6 in San Francisco, is part of the federalbody's investigation into Facebook's federal income tax liability. The suitcenters around the company's transferal of rights associated with its worldwidebusiness to Facebook Ireland Holdings Ltd. during the tax period ending Dec.31, 2010.