"K" <kc[at]homemail.com> wrote:

- quote -

This has been a contentious issue between employers and the
IRS for some time. The IRS maintains that employers must
report the compensation received by former employees.

The W-2 instructions (p. 9) state that this compensation
should be reported with code V in box 12 of the 2002 W-2.

- quote -

Yes. (Pub 17 says that you should call the IRS first.) You
would add the compensation income to the wage income (not
"other income", a common mistake). I would add the notation
"see attachment #A" and add an attachment that explains how
you computed "wage income". Keep it simple; for example:

$xx,xxx W-2 taxable income
x,xxx Compensation from exercise of NQ employee stock options
(date of exercise, #shares, company name)
-------
$xx,xxx Total wage income, Form 1040, Line x

- quote -

Only if the amounts do not agree with your previous filing.

Caveat: The company usually determines the FMV for the purpose
of computing compensation (and for you, the basis). It is not
unusual for their FMV to differ from what you believe the FMV
should be, even if you rely on their definition of the FMV.

-- Ken Mintz

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Like many people, I severed from a company in 2001, and
exercised NQSO options from that employer in March '02. I
did not receive a salary from the company in '02.

I did not receive a W2 from the employer in '02, even though
I exercised options. Do I need one from the employer,
reflecting income from the exercise of these options, to
file my 1040? They were exercised and sold on the same day.

If I do need the W2, can I file my taxes without it?

Do I then refile once I get it, since it's highly unlikely
I'd receive it before the 8/15 extension expires Friday?

I don't think I'd have time to ask for another extension to
10/15, since IRS must approve that extension... it's not an
automatic extension.

Thanks.

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