How do I report a cash out for an individual who is no longer an employee?
July 23, 2001
Subject: Cash out rather than exercise
Date: Wed, 22 Nov 2000
When an individual who is not an employee for the calendar year elected to cash out, what is the reporting procedure? Will it be reported to IRS on 1099?
Thank you very much for your assistance in this matter.
Date: 4 Dec 2000
I assume you are talking about an ISO.
Since the amount relates to previous employment with the company, I believe it should be reported on Form W-2.