New Incentive Stock Option and Employee Stock Purchase Plan Filing Requirements

Under new filing requirements, employers are required to furnish information returns to the Internal Revenue Service (IRS) regarding the exercise of incentive stock options (ISOs) and the transfer of shares acquired under an Employee Stock Purchase Plan (ESPP) that occur on or after January 1, 2007.

The IRS has not yet provided guidance as to the exact information required, the format in which the required information is to be provided, or the due date of the information returns. Unless the IRS decides to postpone the effective date, we anticipate that the deadline for filing the returns will be February 28, 2008.

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