Withholding on stock options after Sun Microsystems: Rev. Rul. 71-52 lives on (and should)
Article Abstract:
The Tax Court's decision in Sun Microsystems, Inc. v. Commissioner did not invalidate Revenue Ruling 71-52 with regard to employment tax treatment of employee stock options. Despite informal IRS releases to the contrary, taxpayers should still apply 71-52 to incentive stock options and employee stock purchase plans. Arguably, statutory stock options should be exempt from employment tax withholding. The Sun Microsystems decision should be used to find that disqualifying disposition income should be included in research credit calculations.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1996
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Former employee can exclude from gross income COBRA premium payments by ex-employer to its medical plan
Article Abstract:
The IRS ruled in Private Letter Ruling 9612008 that contributions of a former employer to the former employee's continued participation in the employer's medical plan were excludible from income by the former employee. The former employer paid most of the premiums required to continue participation under the Consolidated Omnibus Budget Reconciliation Act's post-employment health benefits provisions. The IRS found that the former employee could still be considered an employee for purposes of IRC sections 105 and 106.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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