Employee Stock Purchase Plans Under Internal Revenue Code

Official source: Federal Register (GovInfo) (https://www.govinfo.gov/content/pkg/FR-2009-12-22/pdf/E9-30350.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

Federal Register / Vol. 74, No. 244 / Tuesday, December 22, 2009 / Rules and Regulations 67973

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9471]

RIN 1545–BH68

Employee Stock Purchase Plans Under Internal Revenue Code Section 423; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

SUMMARY: This document contains corrections to final regulations (TD 9471) that were published in the Federal Register on Tuesday, November 17, 2009 (74 FR 59074) providing guidance to assist taxpayers in complying with section 423 in addition to clarifying certain rules regarding options granted under an employee stock purchase plan.

DATES: This correction is effective on December 22, 2009, and is applicable on November 17, 2009.

FOR FURTHER INFORMATION CONTACT: Thomas Scholz or Ilya Enkishev, (202) 622–6030 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations (TD 9471) that are the subject of this document are under sections 421, 422, 423, and 424 of the Internal Revenue Code.

Need for Correction

As published, the final regulations (TD 9471) contain errors that may prove to be misleading and are in need of clarification.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for part 1 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * -

Par. 2. Section 1.423–2 is amended by:
1. Revising the first sentence of paragraph (a)(1).
1. Revising the paragraph (d)(3).
1. Revising the last sentence of paragraph (i)(5) Example 5.

The revisions read as follows:

§ 1.423–2 Employee stock purchase plan defined.

- - - (a) * - - (1) The term ‘‘employee stock purchase plan’’ means a plan that meets the requirements of paragraphs (a)(2) and (a)(3) of this section. * -
- - - (d) * - (3) Examples. The following examples illustrate the principles of this paragraph (d):
- - - (i) * - (5) * - Example 5. - - - On August 31, 2012, Q may purchase under the option an amount of FF stock equal to the difference between $75,000 in fair market value of FF stock (determined at the time the option was granted) and the fair market value of FF stock (determined at the time of grant of the option) purchased during year 2011.

LaNita Van Dyke, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).

[FR Doc. E9–30350 Filed 12–21–09; 8:45 am]

BILLING CODE 4830–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9470]

RIN 1545–BH69

Information Reporting Requirements Under Internal Revenue Code Section 6039; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

SUMMARY: This document contains corrections to final regulations (TD 9470) that were published in the Federal Register on Tuesday, November 17, 2009 (74 FR 59087) relating to the return and information statement requirements under section 6039 of the Internal Revenue Code.

DATES: This correction is effective on December 22, 2009, and is applicable on November 17, 2009.

FOR FURTHER INFORMATION CONTACT: Thomas Scholz or Ilya Enkishev, (202) 622–6030 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations (TD 9470) that are the subject of this document are under section 6039 of the Internal Revenue Code.

Need for Correction

As published, the final regulations (TD 9470) contain errors that may prove to be misleading and are in need of clarification.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for part 1 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * -

Par. 2. Section 1.6039–2 is amended as follows:
1. Revising the heading of paragraph (b).
1. Revising the first and second sentences of paragraph (e)(2).

The revisions read as follows:

§ 1.6039–2 Statements to persons with respect to whom information is reported.

- - - (b) Requirement of statement with respect to stock purchased under an employee stock purchase plan under section 6039(b) .
- - - (e) * - (2) * - - Notwithstanding § 1.6039– 1(f), corporations must furnish information statements to employees in accordance with this section for stock transfers that are subject to § 1.6039–1(a) and (b), and occur during the 2007, 2008 and 2009 calendar years. For purposes of furnishing information statements for stock transfers that occur during the 2007 or 2008 calendar years, taxpayers may rely on § 1.6039–1 of the 2004 final regulations (69 FR 46401) or § 1.6039– 2 of the 2008 proposed regulations (REG–103146–08) (73 FR 40999). * -

LaNita Van Dyke, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).

[FR Doc. E9–30348 Filed 12–21–09; 8:45 am]

BILLING CODE 4830–01–P

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