IRS Eyes Google As Profits Jump

Company going 'gangbusters,' boasts CEO
By Rob Quinn,  Newser Staff
Posted Oct 14, 2011 1:38 AM CDT
FILE - In this March 23, 2010 file photo, the Google logo is seen at the Google headquarters in Brussels. Microsoft Corp. on Thursday, March 31, 2011, threw its weight behind an existing probe by European...   (AP Photo/Virginia Mayo, File)

(Newser) – Hard times elsewhere haven't done any damage to Google's bottom line. The company has announced a whopping 26% year-on-year jump in profits for the third quarter of this year, with net income of $2.73 billion on nearly $10 billion revenue, most of it from advertising, the BBC reports. "The word that springs to mind is 'gangbusters,'" CEO Larry Page boasted, hailing Google+ as a success—although one senior engineer has a different opinion.

Google now employs over 2,500 more people than it did three months ago, with a total head count of 31,353 worldwide, GeekWire notes. The news isn't all good for Google, however: The IRS is auditing how the company dodged federal taxes by shifting profits offshore, sources tell Bloomberg. Google is believed to have avoided some $1 billion in taxes worldwide by using a pair of strategies called the “Double Irish” and “Dutch Sandwich."

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