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This Alert is intended to remind you of certain year-end reporting requirements with respect to stock issued upon the exercise of an incentive stock option (ISO) or transferred under a tax-qualified employee stock purchase plan (ESPP) and inform you of new IRS filing requirements for transactions occurring in 2010 which will be reportable as soon as January 31, 2011
In PLR 201033008 (released August 20), the IRS ruled that in a merger transaction, the executive officers of a public company are not "covered employees" subject to the $1 million limit on deductible compensation because the compensation paid to the individuals was not reportable to the SEC for the short tax year that ended with the merger
On November 16, 2009, the IRS and the Treasury Department issued final regulations governing employee stock purchase plans (ESPPs) that are subject to Code Section 423, effective January 1, 2010
