- Station Info
- Featured on 4
Friday, March 29, 2013 - 8:27am
(CNN) — It might be time for Mark Zuckerberg to un-friend Uncle Sam.The Facebook C-E-O is expected to owe the I-R-S more than a billion dollars in taxes for 20-12.
The momentous bill stems from his decision to exercise a stock option and buy more than 60 million Facebook shares when the site went public.
Even though we don't know exactly what he'll owe, it is known that the I-R-S will treat his stock options as income, which translates to roughly two billion dollars. And since Zuckerberg's tax rate is close to 50 percent, well, you can do the math.
Zuckerberg knew the giant tax bill was coming, so he sold more than 30-million shares during Facebook's I-P-O to cover it, according to a Facebook regulatory filing.