Makin’ it rain on the IRS!!
Facebook’s 2012 tax bill could be one for the record books:
Facebook’s upcoming IPO will make founder and CEO Mark Zuckerberg a billionaire — but it will also stick him with an eye-popping tax bill that could reach as high as $2 billion. Industry experts say that might be one for the record books.
I personally have never seen a bill into the billions — close, but not quite,” said Anthony Nitti, a Colorado-based CPA and partner with Withum, Smith and Brown. “I talked to a few buddies of mine at the Big Four accounting firms, and it’s something not many people have seen.”
The giant tax hit is a consequence of Zuckerberg’s plan to exercise stock options worth billions. The move will significantly increase his ownership stake in the company he founded eight years ago.
Zuckerberg currently owns almost 414 million shares of Facebook, but he also holds options to buy another 120 million shares at the bargain price of 6 cents a piece. Facebook said in its IPO paperwork that Zuckerberg plans to exercise those options and will sell some of his shares during Facebook’s initial offering to cover the tax bill.
DAYUM! Do you think Mark will have to pay this crazy a$$ bill?