View Rule
View EO 12866 Meetings | Printer-Friendly Version Download RIN Data in XML |
TREAS/IRS | RIN: 1545-BA26 | Publication ID: Spring 2004 |
Title: Application of the Federal Insurance Contributions Act, Federal Unemployment Tax Act, and Collection of Income Tax at Source to Statutory Stock Options | |
Abstract: The regulations under sections 424, 3121, 3306, and 3401 clarify the application of the Federal Insurance Contributions Act (FICA), Federal Unemployment Tax Act (FUTA), and the Collection of Income Tax at Source to statutory stock options; i.e., incentive stock options under section 422 (ISOs) and options granted under employee stock purchase plans under section 423 (ESPP options). The regulations provide that at the time of the exercise of a statutory stock option, the individual who was granted the statutory stock option receives wages for FICA and FUTA purposes. The regulations also provide that the amount of wages received equals the excess of the fair market value of the stock acquired pursuant to the exercise of the statutory stock option over the amount paid for the stock and that income tax withholding is not required when an individual exercises a statutory stock option because no income is recognized at the time of exercise by reason of section 421(a)(1). | |
Agency: Department of the Treasury(TREAS) | Priority: Substantive, Nonsignificant |
RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Final Rule Stage |
Major: Undetermined | Unfunded Mandates: Undetermined |
CFR Citation: 26 CFR 31 | |
Legal Authority: 26 USC 3101 26 USC 3111 26 USC 3121 26 USC 3301 26 USC 3306 26 USC 3401 26 USC 3402 26 USC 7805 |
Legal Deadline:
None |
||||||||||||
Timetable:
|
Additional Information: REG-142686-01 Drafting attorney: Stephen B. Tackney (202) 622-6040 Reviewing attorney: Michael A. Swim (202) 622-6040 Treasury attorney: Bill Bortz (202) 622-1352 CC:TEGE | |
Regulatory Flexibility Analysis Required: No | Government Levels Affected: None |
Small Entities Affected: No | Federalism: No |
Included in the Regulatory Plan: No | |
Agency Contact: Stephen B. Tackney Attorney-Advisor Department of the Treasury Internal Revenue Service Room 4030, 1111 Constitution Avenue NW., Washington, DC 20224 Phone:202 622-6030 Fax:202 622-7865 Email: stephen.b.tackney@irscounsel.treas.gov |