Originally Posted by Don Baldwin

OK Dirt...you win...I guess. A noticed "US person" in the language...and corporations ARE a US person...so I did some digging.

"Internal Revenue Code Section 7701(a)(30) defines a U.S. person as:[3]

a citizen or resident of the United States,
a domestic partnership,
a domestic corporation,
any estate (other than a foreign estate, within the meaning of paragraph (31)), and
any trust if—
a court within the United States is able to exercise primary supervision over the administration of the trust, and
one or more United States persons have the authority to control all substantial decisions of the trust.
Holders of US residence visa Green Card (until cancelled with the Internal Revenue Service) [4]"

There must be loopholes that are allowing them to get around the law. Because they OBVIOUSLY aren't effected by this law. They SHOULD be paying taxes on these profits. It must be a pretty big loophole because so many are getting away with not paying. I didn't think corporations were covered under the law...BECAUSE so many are sitting on piles of cash earned overseas.

You are correct...they should be paying...so why aren't they?

My guess...they set up foreign corporations and they make the profits.

"Apple has created subsidiaries in low-tax places such as Ireland, the Netherlands, Luxembourg and the British Virgin Islands to cut the taxes it pays around the world. According to The New York Times, in the 1980s Apple was among the first tech companies to designate overseas salespeople in high-tax countries in a manner that allowed the company to sell on behalf of low-tax subsidiaries on other continents, sidestepping income taxes. In the late 1980s Apple was a pioneer of an accounting technique known as the "Double Irish with a Dutch sandwich," which reduces taxes by routing profits through Irish subsidiaries and the Netherlands and then to the Caribbean."