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
For more answers to our readers' questions and to learn about new tax developments relating to employee stock options, subscribe to our newsletter, Michael Gray, CPA's Option Alert!
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.