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Date:   Tue, 19 Nov 2002
From:   Marlene

We have issued a stock option to an employee. What forms are needed for IRS purposes?

Answer

Date:   Fri, 03 Jan 2003

Hello Marlene,

Usually no forms are required to be filed with the IRS when a stock option is granted. I suggest that you consult with your CPA firm about the requirements when an option is exercised or the stock is sold. There are some companies that specialize in administering employee stock option plans. Maybe your company should hire one of them.

Good luck!

Mike Gray

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IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.