Tax News

CCH (cch.taxgroup.com) reports:

The IRS has provided interim guidance with respect to the Code Sec. 6039
information reporting requirements of stock option transfers. The IRS intends to issue regulations that prescribe rules relating to the information return requirements contained in Code Sec. 6039, as amended by the Tax Relief and Health Care Act of 2006 (P.L. 109-432). The IRS expects that the forthcoming regulations generally will retain the existing rules contained in Reg. §1.6039-1, relating to the information statements to be provided to employees, and generally will require that the same information be included in the information returns made to the IRS.
The IRS also expects that the new Code Sec. 6039 regulations will be effective retroactively to January 1, 2007. Because regulations under Code Sec. 6039 have not yet been issued, the IRS is waiving the obligation to make an information return for 2007 stock transfers governed by Code Sec. 6039. However, corporations should continue to furnish to employees the information required by, and in accordance with, existing Reg. §1.6039-1, with respect to such stock transfers.
Notice 2008-8, 2008FED ¶46,209
Other References:
Code Sec. 6039
CCH Reference - 2007FED ¶35,606.021
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CCH Reference - TRC PAYROLL: 3,356