IRS Proposes New Regulations For Incentive Stock Options

The IRS proposed regulations on the treatment of ISOs and options granted under Employee Stock Purchase Plans ESPPs that are largely the same as the previous rules. The new rules specify that ISOs may only be granted from a plan that states the maximum number of shares that may be granted for all stock-based awards under the plan, modify the definition of corporate transaction and specify that ISOs assumed in a corporate transaction must be granted by the buyer from a plan that satisfies the ISO requirements and permit certain discretionary actions, such as stock-forstock exercise or loans extended at the time of exercise, if such discretion is provided for at the time of grant. This article deals with stock options.

Provided by: Frederic W Cook Topic: Software Date Added: Jul 2003 Format: PDF

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