Insights
Client Alert
Tax Urgency for Backdated (or Misdated) Stock Options: 409A Penalties Absent Action in 2006
October 12, 2006
Mark Poerio with Betty Brower, Eric Keller and Mike Zuppone
On October 4, 2006, the Treasury Department and the IRS signaled their intent to apply penalties under Section 409A of the Internal Revenue Code to those who have received stock options or stock appreciation rights (aka SARs) that were backdated or mis-dated, granted to Section 16 reporting persons, and not subject to corrective amendments before the end of 2006.
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