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Mozilla agrees to pay the IRS $1.5m after a four year audit

Frees up funds for developers
Wed Nov 07 2012, 12:51
Firefox OS mobile

SOFTWARE DEVELOPER Mozilla has settled with the US Internal Revenue Service (IRS) following a four year audit, agreeing to pay $1.5m.

The IRS opened an audit of the Mozilla Foundation back in 2008 following reports that the web browser developer had earned $68m through a business deal with Google to integrate its internet search service into the Firefox web browser. After four years, the IRS and the Mozilla Foundation came to a settlement, with Mozilla agreeing pay the IRS $1.5m.

Since the IRS began its audit of Mozilla, the software developer set aside $15m as a contingency plan, but it seems that the two parties have managed to come to a favourable deal. Mitchell Baker, chair of the Mozilla Foundation announced that the $1.5m agreement is a "very positive result".

Baker said, "I'm happy to note that we've settled the issues raised and the IRS recently closed the audit. We entered into a settlement, under which the Mozilla Foundation paid the IRS US $1.5 million. As a result of this settlement, $15 million in funds we had held in reserve pending the resolution of the audit are now available to support the Mozilla Foundation's mission to support innovation and opportunity on the web."

Mozilla said it will go through the various documents that were part of the audit and will share details before the end of 2012. µ


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