Mozilla to settle US tax affair for $1.5 million

The confrontation between Mozilla Foundation and the USA government’s Internal Revenue Service (IRS) will soon end with a settlement: Mitchell Baker, chair of the Firefox and Thunderbird organization, announced on her blog that the agreement with the federal tax agency will cost 1.5 million dollars.

The open source foundation came under the scrutiny of the IRS in 2008, after Mozilla decided that the huge funding collected thanks to its partnership with Google (66 million dollars on 77 millions overall) were royalty contributions and hence non-taxable.

In 2007 the foundation reserved 15 million dollars as well, just in case the federal tax agents came and started questioning around about the tax exemption status held by the organization. Now that the settlement will cost just 10% of that sum, Baker said, the rest of the money will be used to sustain “the Mozilla Foundation’s mission to support innovation and opportunity on the web”.

“I believe this to be a very positive result – the chairman stated – we will now go back through the various documents and will have more details on this audit to share in the future. I expect to do so before the end of this year”.

Via: The Register
Source: Mitchell Baker’s blog

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