Menu
Tax Notes logo

Writer Seeks Consistent Treatment of Employee Stock Option Plans, Incentive Stock Options

OCT. 1, 2004

Writer Seeks Consistent Treatment of Employee Stock Option Plans, Incentive Stock Options

DATED OCT. 1, 2004
DOCUMENT ATTRIBUTES

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.

Barbara B. Creed

 

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
DOCUMENT ATTRIBUTES
Copy RID