Posted on July 18, 2008 by Joseph M. Wallin

New Incentive Stock Option and ESPP Regulations Issued

The law has changed regarding reporting of incentive stock option exercises.  It used to be that issuers were only required to give optionees an information statement, but not report the exercise to the IRS.  Now reporting to the IRS is required.

You can read the new regulations here.

"As amended by the Act, section 6039 requires corporations to file an information return with the IRS, in addition to providing employees with an information statement, following a stock transfer. The time and manner for filing a return with the IRS, as well as the information to be contained in the return and furnished to employees, is addressed in these proposed regulations. Section 6039, as amended by the Act, applies to stock transfers occurring on or after January 1, 2007. However, in Notice 2008-8, 2008-3 IRB 276 (December 19, 2007) (see Sec.  601.601(d)(2)(ii)(b)), the IRS waived the obligation to file an information return for 2007 stock transfers governed by section 6039."

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Posted on January 7, 2008 by Joseph M. Wallin

SEC expands eligibility for use of Form S-3 and Form F-3

By Kenneth Mitchell-Phillips

Smaller reporting companies should have an easier time complying with reporting requirements from the Securities and Exchange Commission (the "SEC") in 2008. Prior to the new year, the SEC revised the rules governing eligibility to register offerings under the Securities Act using a short-form registration statement on Form S-3 or Form F-3. The result is certain domestic and foreign private issuers will be able to conduct primary securities offerings on these forms without regard to the size of their market capitalization. Essentially, the amendments should allow more companies to benefit from the greater flexibility in accessing the public securities market afforded by Form S-3 and Form F-3. The full text of the SEC’s adopting Release (Release No: 33-8878) concerning the amendments is available on the SEC website, www.sec.gov.

 

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