Filing deadline reminder for companies with incentive stock options; reports must be delivered by January 31
CONTRIBUTED BYTrent Dykestrent.dykes@dlapiper.com A reminder to companies that had incentive stock option exercises in 2012, Section 6039 of the Internal Revenue Code requires a corporation to furnish a written statement to any employee or former employee who either exercised an incentive stock option during 2012 or during 2012 first transferred legal title to shares acquired under the corporation's Section 423 employee stock purchase plan. The corporation must furnish these statements on Forms 3921 and 3922 no later than January 31, 2013. These corporation must also file information returns providing the same information with the IRS. This requirement applies to both privately...
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December 31 is IRS deadline to correct Section 409A violation due to severance conditioned on release of claims
Many severance and other compensation arrangements provide for payment only if and when the employee signs a release of claims and the release has become irrevocable. For a general release of claims to be valid under federal employment law, the employer may be required to give the employee a specified number of days to consider the release and then an additional period of time in which to revoke the release after signing it. The IRS believes that a release contingency for payment of severance or other deferred compensation could violate Section 409A of the Internal Revenue Code if not drafted...
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Issuing K-1s Electronically? New IRS Rules Apply.
CONTRIBUTED BYAsher Bearmanasher.bearman@dlapiper.com The IRS recently issued new guidance for funds that deliver Schedule K-1s electronically to their investors. Under the new rules, fund managers must request the consent, in a particular form, of each investor that will receive Schedule K-1s electronically or the Schedule K-1s must be provided in hardcopy/paper format. Your legal representative should be able to provide you with a form consent that complies with these new IRS requirements, which are summarized below thanks in large part to Howard Rosenblum and Joseph (Tony) Hugg in DLA Piper's Boston office....
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