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Old 08-21-2008, 04:25 PM
Alan
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Default Re: NQSO, tax withholding and safe-harbor

Pee Nut wrote:
- quote -

> As I understand, the IRS requires that employers withhold taxes when NQSOs
> are exercised. I'm curious if this rule stands when an employee ceases to
> be an employee (non-employee) and exercises any remaining vested shares
> under the terms of the option agreement. If the exercise happens in the
> next year, then would it possible to take advantage of "safe-harbor"?

Look at your stock option letter agreement that you received when
you were granted the options. There should be two sections that
address what happens to your options when you terminate
employment for cause or otherwise and what your choices are for
tax withholding at exercise.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
  #-1  
Old 08-20-2008, 04:52 AM
Pee Nut
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Posts: n/a
Default NQSO, tax withholding and safe-harbor

As I understand, the IRS requires that employers withhold taxes when NQSOs
are exercised. I'm curious if this rule stands when an employee ceases to
be an employee (non-employee) and exercises any remaining vested shares
under the terms of the option agreement. If the exercise happens in the
next year, then would it possible to take advantage of "safe-harbor"?

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
 

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nqso, safeharbor, tax, withholding
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