Press Room

May 14, 2012

Thornson Comments on “Facebook Employees Face $4 Billion Tax Bite”

IRS and California Tax collectors are poised to collect an average of $1.1 million per employee following Facebook’s initial public offering. A hit that will come in hard and fast, due in part to Facebook's unique form of employee equity, restricted stock units or RSUs. Though this helped the company postpone its IPO by keeping the legal limit of shareholders below the reporting threshold, employees will now have their shares vest in a very short time while also triggering a taxable event on the entire value in the same tight timeframe. 

“With stock options, there’s a lot of planning you can do around taxes,” said Andersen Tax’s Ray Thornson. “With RSUs there’s absolutely nothing that you can do about it.” Thornson, who counts several Facebook employees among his clients, helps to provide insight into this situation.

 

CNN Money 
May 9, 2012
Read the entire article here.