As discussed in our December 16, 2010 blog article, the IRS issued final regulations in 2009 under Section 6039 of the Internal Revenue Code (the “Code”) that require Employers to annually furnish each employee who exercised incentive stock options (“ISOs”) or sold or otherwise transferred shares acquired under an employee stock purchase plan (“ESPP”) during a year with a detailed information statement by January 31 of the following year.  In addition, Employers must file an information return with the IRS by February 28 of the following year, or by March 31 for Employers filing electronically.
Continue Reading Reminder to Perform Annual ISO/ESPP Reporting in January 2013

Summary

As discussed in our December 16, 2010 blog article, the IRS issued final regulations in 2009 under Section 6039 of the Internal Revenue Code (the “Code”) that require Employers to annually furnish each employee who exercised incentive stock options (“ISOs”) or sold or otherwise transferred shares acquired under an employee stock purchase plan (“ESPP”) during a year with a detailed information statement by January 31 of the following year. In addition, Employers must generally file an information return with the IRS by February 28 of the following year, or by March 31 for Employers filing electronically.Continue Reading Reminder to Prepare for Annual ISO/ESPP Reporting in January 2012

In accordance with its 2010-2011 Priority Guidance Plan, the Internal Revenue Service published in the June 24, 2011 Federal Register proposed regulations (the “Proposed Regulations”) covering certain aspects of Internal Revenue Code Section 162(m).
Continue Reading New Internal Revenue Code Section 162(m) Proposed Regulations Take Surprising Position on Restricted Stock Unit Grants

Since our October 25, 2010 blog titled, “Time Running Out to Obtain Maximum Relief for Correcting 409A Document Failures under IRS Notice 2010-6”, the IRS published Notice 2010-80 on November 30, 2010, which expands the scope of the document correction program under Notice 2010-6 and provides additional transition relief for employers to amend arrangements intended to comply with the requirements of Section 409A of the Internal Revenue Code (“409A”). As we previously reported, document corrections under Notice 2010-6 that are implemented before 2011 are treated as having been corrected on January 1, 2009, which can mean that any requirement of income inclusion under 409A as a condition of the relief would generally not apply. Therefore, with only ten days left in 2010, employers should strongly consider amending noncompliant arrangements that are eligible for correction under Notice 200-6 (as modified by Notice 2010-80) to take advantage of the maximum possible relief. Continue Reading Expanded Relief for Correcting 409A Document Failures under IRS Notice 2010-80

In January 2011, Employers must furnish each employee who exercised incentive stock options (“ISOs”) or sold or otherwise transferred shares acquired under an employee stock purchase plan (“ESPP”) during 2010 with a detailed information statement by January 31, 2011, and must also file an information return with the Internal Revenue Service (the “IRS”) by February 28, 2011 (March 31, 2011 for corporations filing electronically).Continue Reading Time for Corporations to Get Ready to Issue Annual ISO/ESPP Information Statements and File New Information Returns with IRS; IRS Releases New Forms and Instructions

With less than ten weeks remaining in 2010, companies should once again consider reviewing their compensatory plans and agreements to ensure that such agreements are in documentary compliance with Internal Revenue Code section 409A (“409A”). 409A is the federal tax statute governing the taxation of nonqualified deferred compensation arrangements. While all compensation agreements should be prepared either to be exempt from or in compliance with 409A, the Internal Revenue Service has provided additional impetus for companies to re-review their compensation plans and agreements.Continue Reading Time Running Out to Obtain Maximum Relief for Correcting 409A Document Failures under IRS Notice 2010-6

The Internal Revenue Service (the “IRS”) issued final regulations on November 17, 2009 relating to options granted under an ESPP as defined in section 423 of the Internal Revenue Code (the “Code”). Also, on the same date, the IRS issued new reporting requirements for ESPPs (see our November 19, 2009 blog). Under an ESPP, an employee can purchase shares at a discount from fair market value and also receive favorable tax treatment upon the sale of such shares if certain requirements are satisfied. Continue Reading IRS Issues New Final Regulations for Employee Stock Purchase Plans (“ESPP”)

The Internal Revenue Service (the “IRS”) has issued final regulations regarding the information return and information statement requirements under Section 6039 of the Internal Revenue Code.  Section 6039 was amended in 2006 to require corporations to file an information return with the IRS (the “Return”) and furnish a written information statement (the “Statement”) to each employee who exercises incentive stock options (“ISOs”) or sells or otherwise transfers shares acquired under an employee stock purchase plan (“ESPP”) by January 31 following the year in which such transactions occur.  As we reported in our July 23, 2008 blog article, the IRS issued proposed regulations relating to these requirements in July 2008, which, among other things, relieved corporations of the requirement to file a Return for stock transfers that occurred during the 2007 and 2008 calendar years.Continue Reading IRS Issues Final Regulations Regarding Annual ISO/ESPP Reporting Requirements

Employers must furnish employees who exercised incentive stock options (“ISOs”) or sold or otherwise transferred shares acquired under an employee stock purchase plan (“ESPP”) during 2007 with a detailed information statement by January 31, 2008.Continue Reading Reminder For Corporations To Issue Annual ISO/ESPP Information Statements To Employees By January 31

On July 16, 2008, the Internal Revenue Service (“IRS”) issued proposed new regulations relating to the information return and information statement requirements under Section 6039 of the Internal Revenue Code. As we reported in our January 24, 2008 blog article, Code Section 6039 requires corporations to file an information return with the IRS (the “Return”) and furnish a written information statement (the “Statement”) to each employee who exercises incentive stock options (“ISOs”) or sells or otherwise transfers shares acquired under an employee stock purchase plan (“ESPP”) by January 31 following the year in which such transactions occur.Continue Reading Proposed Regulations Revise Annual ISO/ESPP Reporting Requirements

 

On February 21, 2008, the Internal Revenue Service (“IRS”) released Revenue Ruling 2008-13, which confirms and expands upon the position taken in Private Letter Ruling (“PLR”) 200804004 that compensation intended to qualify as “performance-based compensation” under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), will not be exempt from the $1 million deduction limit if such compensation may be paid upon a covered executive’s involuntary termination without cause by the employer, the executive’s termination for good reason or the executive’s retirement.

Continue Reading IRS Confirms Significant Change in the Landscape of 162(m) Performance-Based Compensation Arrangements