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When recent reports surfaced stating that Facebook founder and CEO Mark Zuckerberg could possibly face a $2 billion tax bill, tax professionals nationwide began speculating that the social media giant set a record for the most taxes paid at one time.

“I personally have never seen a bill into the billions — close, but not quite,” Anthony Nitti, a CPA in Colorado and partner with Withum, Smith and Brown told CNN. “I talked to a few buddies of mine at the Big Four accounting firms, and it’s something not many people have seen.”

Yet, when you read the fine print and realize that Zuckerberg’s tax bill is the result of his decision to exercise stock options worth billions, that will increase his current $16 billion ownership stake in the company, a $2 billion tax bill does not seem as expensive.

Furthermore, Zuckerberg’s move will allow him to buy an additional 120 million shares of Facebook stock at the bargain basement price of 6 cents per share!  To put that price into proper perspective, you need to understand that Facebook said in its IPO filing that its shares are valued at $29.73 each.

This translates to $3.6 billion in options for Zuckerberg; but that’s not all.

Analysts anticipate Facebook shares going for a premium of $40 per share when they are sold to the public, boosting the value of Zuckerberg’s options to nearly $5 billion.

Although his salary at Facebook is only $1 per year, reports from Forbes last year state that Zuckerberg’s net worth is north of $17.5 billion.

Check out the video breaking down Mark Zuckerberg’s $2 billion tax bill:

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