Writer Seeks Consistent Treatment of Employee Stock Option Plans, Incentive Stock Options
Writer Seeks Consistent Treatment of Employee Stock Option Plans, Incentive Stock Options
- AuthorsCreed, Barbara B.
- Institutional AuthorsTrucker Huss APC
- Cross-Reference
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2004-20047
- Tax Analysts Electronic Citation2004 TNT 202-28
From: Barbara Creed [BCreed@TruckerHuss.com]
Sent: Friday, October 01, 2004 4:36 PM
To: Notice.Comments@irscounsel.treas.gov
Subject: Notice 2004-55
This comment is provided with respect to Notice 2004-55. The Service and Treasury Department have requested comments on certain issues that should be addressed or clarified in revising the final regulations under Section 423. This comment specifically pertains to Item 3 in Section III of Notice 2004-55: Whether the calculation of the amount of stock that may be purchased under an ESPP (the $25,000 limit under Section 423(b)(8)) should be determined in a manner consistent with the $100,000 limitation for ISOs described in Section 1.422-4.
This firm represents a number of employers who sponsor ESPPs. In our experience, the application and administration of the $25,000 limit of Section 423(b)(8) has been one of the most difficult areas of ESPP compliance, particularly for plans using option periods that span more than one year. We find the guidance the Service has provided in the ISO regulations (Section 1.422-4) to be clear and comprehensive. We would welcome the extension of the principles reflected in Section 1.422-4 to the ESPP rules in the revisions to the existing regulations.
Please let me know if you need further information or would like any amplification of this comment.
Trucker Huss, APC
120 Montgomery Street, 23rd Floor
San Francisco, CA 94104-4326
(415) 788-3111 x 136
Fax: (415) 421-2017
Pager: (415) 605-5932
www.truckerhuss.com
Email: bcreed@truckerhuss.com
- AuthorsCreed, Barbara B.
- Institutional AuthorsTrucker Huss APC
- Cross-Reference
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2004-20047
- Tax Analysts Electronic Citation2004 TNT 202-28