| FEEDBACK |
February 23, 2007
* * * Special Edition * * *
|
An Update on Payroll and Employment Tax Topics |
Payroll Insights
This is a reminder that employers have
until February 28, 2007 to notify the IRS of their
intention to
participate in a resolution program aimed at providing relief for
employees from the requirement to pay Section 409A taxes as a result of
their companies' issuance of
misdated stock options.
The attached article discusses the IRS correction program (which
applies to misdated stock options exercised in 2006) and the correction
methodologies permitted under
section 409A for misdated stock options
not yet exercised. The article also provides background information and
considers the effects of misdated stock options pursuant
to the
incentive stock option rules, section 162(m), and section 409A.
