Client Alert: New IRS Notices Required for ISO and ESPP Transactions Which Occurred in 2010

Client Alerts

Wednesday, January 12, 2011

The Wyrick Robbins Tax Practice Group has issued a Client Alert for corporations that sponsor incentive option (ISO) programs or employee stock purchase plans (ESPP). The Alert provides information about new forms created by the Internal Revenue Service which must be filed with the IRS for each employee who acquired stock through an ISO or ESPP during the tax year. These forms may also serve as the means by which the employer provides required notice to any such employees.

The Client Alert also includes a reminder of existing requirements applicable to the exercise of a nonstatutory stock option.

With the notice deadlines approaching at the end of January and the filing deadlines occurring as early as the end of February, companies will want to take any necessary steps soon to ensure timely compliance.