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Additions & Updates at myStockOptions.com: 1st Quarter 2011

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1st QUARTER 2011

TAX CENTER

OTHER CONTENT TOPICS

GLOBAL TAX GUIDE: Denmark, Ireland, United Kingdom

GLOSSARY: Offer Letter and Private Letter Ruling (PLR)

ASK THE EXPERTS: In January, my company sent me Form 3922 for ESPPs and Form 3921 for ISOs. What are these? What do I do with them?

NONQUALIFIED DEFERRED COMPENSATION: The latest major updates and additions at our new site myNQDC.com.


TAX CENTER

NEW! ESPP Taxation Made Simple

NEW! Has the likelihood of a tax audit increased?

NEW! What is the tax basis for calculating gains on Schedule D of my tax return after I sell stock acquired from stock options, restricted stock/RSUs, performance shares, or ESPPs?

Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)

Stock Option Financial Planning After Your Tax Return Is Filed (Part 2)

How The Bush Tax Cuts Still Affect Your Stock Option Planning

Now that the 2010 Tax Relief Act has been passed, why do the provisions in the 2003 tax law still affect my strategy for stock options and restricted stock?

When I file an extension to complete my tax return after the IRS deadline, are there any mistakes I should avoid that involve stock grant income?

I received a notice (CP-2000) from the IRS stating that, according to last year's tax return, I owe money for the cashless exercise of my stock options. I thought I paid all the taxes through withholding at exercise. How do I reply?

I received a notice (CP-2000) from the IRS stating that, according to last year's tax return, I owe money for the sale of my restricted stock when it vested. I thought I paid all the taxes through withholding at vesting. How do I reply?

Will the amount of tax withheld at NQSO exercise cover the amount of tax that I am required to pay when I file my return?

Will the amount of tax withheld at my restricted stock vesting cover the amount of tax that I am required to pay when I file my return?

When I exercise my stock appreciation rights (SARs), will the amount of tax withheld cover the amount of tax that I must pay when I file my return?

Are there any strategies for paying estimated taxes on income from stock options and restricted stock?

When my restricted stock vests, will I need to make estimated tax payments?

After I exercise NQSOs, will I need to make estimated tax payments?

If I exercise ISOs and hold the stock (triggering AMT for the spread) or sell the stock in a disqualifying disposition, will I need to make estimated tax payments?

If I exercise stock appreciation rights (SARs), will I need to make estimated tax payments?

How are the dividends on restricted stock taxed and reported to me?

Do I get dividends with restricted stock units (RSUs)? How are they taxed?

What is the tax basis of my ISO stock that I use to calculate the sale gain for AMT purposes?

Do the rules of deferred compensation under IRC Section 409A affect my stock grants?

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OTHER CONTENT SECTIONS

Basics

How have stock-market volatility and the economic downturn of the past few years changed corporate stock grant practices?

What do surveys and examples reveal about the effects of expensing, stock market trends, and other developments on equity compensation?

How do I value options and stock in a private company?

How will my broker know which shares to sell? Should I identify them in some way?

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Restricted Stock & Restricted Stock Units

Will the amount of tax withheld at my restricted stock vesting cover the amount of tax that I am required to pay when I file my return?

When my restricted stock vests, will I need to make estimated tax payments?

What is the difference between restricted stock and performance shares or units?

How are the dividends on restricted stock taxed and reported to me?

Do I get dividends with restricted stock units (RSUs)? How are they taxed?

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NQSOs

Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)

Stock Option Financial Planning After Your Tax Return Is Filed (Part 2)

Will the amount of tax withheld at NQSO exercise cover the amount of tax that I am required to pay when I file my return?

After I exercise NQSOs, will I need to make estimated tax payments?

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ISOs & AMT

Dr. Strange Tax, Or: How I Learned To Stop Worrying And Love The AMT

Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)

Stock Option Financial Planning After Your Tax Return Is Filed (Part 2)

In general, how does the alternative minimum tax (AMT) calculation work?

Are there guidelines for calculating AMT trigger points? For example, if my spouse and I earn $100,000, will we trigger the AMT when I exercise ISOs?

What ISO strategies can help minimize AMT liability?

I know that my ISO exercises will trigger the AMT for me this year or next. What planning strategies should I use that are related to other tax payments and income?

What is the tax basis of my ISO stock that I use to calculate the sale gain for AMT purposes?

I have paid AMT, so do I get an adjustment when I sell the ISO shares to get all the taxes back?

After I have paid AMT for my ISO exercise and hold, what are some mistakes that I must avoid on my tax return?

My company's stock price has dropped substantially since I acquired shares from my stock grants, leaving me with a ruinous tax bill much larger than my gains. Is there anything I can do to reduce or eliminate the ordinary income or AMT that I owe?

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Employee Stock Purchase Plans (ESPPs)

NEW! ESPP Taxation Made Simple

Key Dates And Terms You Must Know For Your Company's ESPP

What is an "offering date" or "enrollment date"?

What are the eventual tax consequences of participating in a tax-qualified employee stock purchase plan (ESPP)?

Are taxes withheld from the spread when you buy stock under a tax-qualified employee stock purchase plan?

Are there different kinds of employee stock purchase plans?

Will the price always be discounted from the fair market value of the stock?

Do surveys show how employee stock purchase plans are changing with mandatory expensing and other developments?

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Stock Appreciation Rights (SARs)

When I exercise my stock appreciation rights (SARs), will the amount of tax withheld cover the amount of tax that I must pay when I file my return?

If I exercise stock appreciation rights (SARs), will I need to make estimated tax payments?

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Financial Planning

NEW! Has the likelihood of a tax audit increased?

Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)

Stock Option Financial Planning After Your Tax Return Is Filed (Part 2)

How The Bush Tax Cuts Still Affect Your Stock Option Planning

Now that the 2010 Tax Relief Act has been passed, why do the provisions in the 2003 tax law still affect my strategy for stock options and restricted stock?

How do stock grants affect Roth IRA contributions and conversions?

Do I get dividends with restricted stock units (RSUs)? How are they taxed?

What is the tax treatment for gifts of company stock?

If my company requires me to have a foreign bank or brokerage account because of the stock plan, does this require any special filings with the IRS?

Does the US have an exit tax?

If I move to another country to work, will I still have to pay US taxes on option exercises, restricted stock vesting, and stock sales? Can I avoid double taxation?

Will my company be able to take a tax deduction for the value of my restricted stock, restricted stock units, performance shares, or stock options if my compensation already exceeds $1 million?

Job Events

How have stock-market volatility and the economic downturn of the past few years changed corporate stock grant practices?

How common are clawback provisions?

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Life Events

Funding Your Child's College Education With Stock Options And Other Stock Grants (Parts 1, 2, and 3)

How do stock grants affect Roth IRA contributions and conversions?

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SEC Law & Rule 10b5-1 Trading Plans

NEW! What is an affiliate, and why does affiliate status affect the ability to resell company stock?

What are the requirements that affiliates (e.g. executives and directors) must follow to sell their stock to the public under Rule 144?

Can the SEC, the Treasury, or my company take away stock option gains, restricted stock, and performance shares after accounting fraud has occurred?

Aren't my stock-trading records confidential? How could the stock exchanges and the SEC get them and other information about me?

Can I receive a bounty for providing information about someone who has committed insider trading?

Is the tax treatment different if I work for a pre-IPO company? For example, are taxes delayed at exercise until the stock is registered with the SEC?

Is the date for determining taxes delayed if the stock I receive is not registered with the SEC and I cannot immediately sell it?

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M&A

What could happen to my restricted stock in an acquisition of my company?

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Pre-IPO

NEW! In a privately held company, can restricted stock and stock option grants be structured so that they vest only when the company goes public or gets acquired?

Is the tax treatment different if I work for a pre-IPO company? For example, are taxes delayed at exercise until the stock is registered with the SEC?

Is the date for determining taxes delayed if the stock I receive is not registered with the SEC and I cannot immediately sell it?

How do I value options and stock in a private company?

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GLOBAL TAX GUIDE This is premium content

UPDATED OR EXPANDED

Denmark
Ireland
United Kingdom

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GLOSSARY

NEW!

Offer Letter
Private Letter Ruling (PLR)

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ASK THE EXPERTS

NEW!

In January 2011, my company sent me two new tax-related forms: Form 3922 for ESPP purchases and Form 3921 for ISO exercises. What are these forms? What do I do with them?

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NONQUALIFIED DEFERRED COMPENSATION

The latest major updates and additions at our new website myNQDC.com:

White Paper: Plan Design Features To Increase Participation In Nonqualified Deferred Compensation Plans

NEW! Are there restrictions on when I can receive distributions of my deferred compensation and on what I can elect?

NEW! Can I protect my NQDC plan when my company is acquired?

NEW! Has the likelihood of a tax audit increased?

NEW! Are severance payouts subject to the same six-month delay as other NQDC payments?

What happens to my NQDC plan in a merger or acquisition?

What if I have a financial or medical hardship? Can I get a distribution?

Does ERISA apply to and protect my NQDC plan?

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