What forms must be filed when issuing stock options?

January 22, 2003

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!

Comments are closed.