Client Alert
IRS Issues Final ESPP Regulations and Reporting Requirements for ISOs and ESPPs
Earlier this month, the IRS issued final regulations governing employee stock purchase plans ("ESPPs") that are intended to receive favorable tax consequences under Section 423 of the Internal Revenue Code of 1986. The final regulations apply on and after January 1, 2010, so employers should act now to determine whether plan amendments may be necessary in order to attempt to preserve participant tax treatment. At the same time, the IRS also issued regulations regarding information returns that must be filed by employers with the IRS following a stock transfer pursuant to an incentive stock option or ESPP exercise.
Click here to read our client alert summarizing the new IRS requirements.
If you have questions regarding the effect of the final ESPP regulations or the information reporting requirements, please contact either the Womble Carlyle attorney with whom you usually work, one of our Employee Benefits attorneys or one of our Corporate and Securities attorneys.
WCSR Employee Benefits Attorneys
WCSR Corporate & Securities Attorneys
Womble Carlyle client alerts are intended to provide general information about significant legal developments and should not be construed as legal advice on any specific facts and circumstances, nor should they be construed as advertisements for legal services.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice within this client alert is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in a client alert.
