Following up on my prior posts (links below):  Democratic Senators Carl Levin and Kent Conrad yesterday introduced legislation to close the 'Facebook Tax Loophole.'  Facebook awarded Mark Zuckerberg options to purchase 120 million shares for 6 cents per share. Although financial reporting rules allow Facebook to deduct the options at 6 cents per share, tax rules allow Facebook to deduct the amount that Zuckerberg realizes when he exercises his options—$4.8 billion if the value is $40 per share.

• Accounting Today, Senator Proposes Closing Facebook Tax Loophole
• American Thinker, Strangling American Capitalism with the Zuckerberg Tax
• Forbes, Senator: Shock Is What Facebook Can Do Legally
• MSNBC, No Taxes for Facebook? Senator Cries Foul
• Politico, Carl Levin Irked Facebook Could Cash in on Corporate Tax Loophole
• Senator Carl Levin, Floor Speech
• Talking Points Memo, Sen. Levin Calls For Congress To Close ‘Facebook’ Tax Loophole
• Washington Post, Senators Target Facebook With Bill That Would Close Stock-Option Loophole

Prior TaxProf Blog coverage:

• Tax Aspects of Facebook's IPO (Feb. 6, 2012)
• The Zuckerberg Tax: A Progressive Mark-to-Market System (Feb. 9, 2012)
• More on Facebook, Zuckerberg, and Taxes (Feb. 10, 2012)