SAN FRANCISCO (CBS SF) — It seems Facebook CEO Mark Zuckerberg won’t be “liking” anything from the Internal Revenue Service.
CNN Money reports that Zuckerberg will owe the IRS $1.1 billion from his 2012 tax bill.
The Facebook founder is taking the hit after making the company public last year and purchasing 60 million shares at a “strike price” of 6 cents each. According to CNN Money, Zuckerberg will have to report income of $2.3 billion made from his stock because the IRS considers such stock options a form of compensation.
“With numbers that large, it’s usually capital gains, not ordinary income,” Toby Johnston, a partner at tax firm Moss Adams LLP, told CNN Money.
Zuckerberg faces a 35 percent federal tax rate and a California tax rate of 13.3 percent.
CNN Money reports that Zuckerberg sold 30 million Facebook shares last year for over $1 billion to help pay for the massive IRS bill.
Facebook has been trading Friday around $25.60 a share.
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