Podcast: Discussing and Demystifying the IRS News Release on ESOPs
Investment Management Update – Exit Strategies
Many corporations use stock options to incentivize employees and other service providers. A stock option is a right granted by a corporation to an employee, consultant or advisor that provides such employee, consultant or...more
On this episode of “Just Compensation,” Darren Goodman, Sophia Mokotoff, and Taryn E. Cannataro discuss equity compensation that can be issued by partnerships, with a special focus on profits interests. Profits interests are...more
As reported in Part 4 of our 2022 End of Year Plan Sponsor “To Do” List, Section 6039 of the Internal Revenue Code (the “Code”) requires employers to provide a written information statement to each employee or former...more
Each year, corporations that have employees who exercise incentive stock options (ISOs) as described under Section 422(b) of the Internal Revenue Code must file a Form 3921 with the IRS for each transfer of stock to those...more
Requirement to Report For (1) any exercise of an incentive stock option (ISO) during 2023 or (2) transfer during 2023 of a share previously purchased pursuant to a tax-qualified employee stock purchase plan (ESPP), the...more
This alert serves as a reminder of certain year-end reporting requirements imposed under Section 6039 of the Internal Revenue Code of 1986, as amended, with respect to...more
Deadlines are approaching for employers to report employee exercises of incentive stock options and employee stock purchase plan purchases during 2023. Corporations that offer incentive stock options (ISOs) or maintain a...more
Companies frequently grant tax-advantaged incentive stock options (ISOs) or sponsor a tax-advantaged employee stock purchase plan (an ESPP) to provide tax-advantaged equity incentives to employees that are U.S. taxpayers. One...more
This Client Alert is intended to remind you of certain year-end reporting requirements under Section 6039 of the Internal Revenue Code of 1986, as amended (the “Code”), with respect to stock issued to employees (or former...more
Stock options are often a significant, and critical, component of a public company’s compensation and benefits programs as they align the interests of employees and stockholders—when the company’s stock price increases,...more
Consider this fairly typical situation. Four years ago, employee Emma was granted an incentive stock option (ISO) to purchase 100,000 shares with an exercise price of $0.86 per share. Emma’s award is fully-vested and she...more
This blog is the first post in a four-part series. Part I will provide a high-level summary of stock option basics....more
Reporting Requirements - Section 6039 of the Internal Revenue Code requires corporations to file information returns with the Internal Revenue Service (IRS) and provide information statements to current and former employees...more
As a reminder, the Internal Revenue Code requires that you furnish an information return to each individual (“optionee”) who exercised an incentive stock option (ISO) during 2022 and to each individual (“transferor”) who...more
Section 6039 of the Internal Revenue Code requires corporations to provide information statements to employees and former employees and send information filings to the IRS regarding exercises of incentive stock options (ISOs)...more
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...more
Stock options are how cash-starved tech, and life sciences companies large and small can most easily recruit and retain talent. Stock options are also an excellent tool for bigtech and bigpharma companies to align the...more
Annual Information Statements and IRS Returns Requirement to Report For (1) any exercise of an incentive stock option (ISO) during 2021 or (2) transfer during 2021 of a share previously purchased pursuant to a tax-qualified...more
Section 6039 of the Internal Revenue Code requires corporations to provide information statements to employees (including former employees) and information filings to the IRS regarding exercises of incentive stock options...more
Deadlines are approaching for employers to report last year’s employee exercises of incentive stock options and employee stock purchase plan purchases. Corporations that offer incentive stock options (ISOs) or maintain a...more
Options to purchase stock of an employer continue to be a popular form of equity-based compensation, particularly among start-ups and other privately-held companies. ...more
In deciding how to best compensate employees in a startup, clients often consider stock options as a viable choice. But even once the decision is made to move forward with stock options, clients are still left to decide...more
As reported in Part 3 of our 2020 End of Year Plan Sponsor “To Do” List, Section 6039 of the Internal Revenue Code (the “Code”) requires employers to provide a written information statement to each employee or former employee...more
In this Issue. The Office of the Comptroller of the Currency (OCC) issued guidance on its authority to charter limited purpose trust companies, raising the possibility that a limited purpose national bank could be organized...more
Now that 2021 is here, corporations should be aware of IRS reporting requirements regarding certain 2020 stock transactions with their employees. Section 6039 of the Internal Revenue Code of 1986, as amended (the...more