Employee Benefits Update - January 31, 2014 Deadline for Reporting Incentive Stock Option Exercises and Employee Stock Purchase Plan Transfers that Occurred in 2013


by Thomas R. Hoecker, Marvin S. (Bucky) Swift, Jr. and Greg Gautam

As reported in Part 1 of our 2013 End of Year Plan Sponsor “To Do” Lists, Section 6039 of the Internal Revenue Code (the Code) requires employers to provide an information statement to each employee or former employee regarding: (1) the transfer of stock pursuant to the exercise of an Incentive Stock Option (ISO); and (2) the transfer by the employee or former employee of stock purchased at a discount under an Employee Stock Purchase Plan (ESPP). For ISO grants and ESPP transfers that occurred in 2013, the required information statements must be provided to employees and former employees no later than January 31, 2014. In addition, employers must file a corresponding return with the Internal Revenue Service (IRS) by February 28, 2014 for paper filings and March 31, 2014 for electronic filings.

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