Brownstein Client Alert, February 14, 2008
Corporations that sponsor incentive stock option plans (“ISO plans”) and employee stock purchase plans (“ESPPs”) have two annual reporting requirements: 1. An annual report must be filed with the Internal Revenue Service (“IRS”) regarding the exercise of ISOs and the transfer of shares under an ESPP that occur during the year (the “Information Return”) and, 2. An annual summary statement must be provided to each person who is an optionee or participant regarding the person’s stock transfers under the ISO plan or ESPP (the “Information Statement”).
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