{"id":80,"date":"2007-07-15T14:43:13","date_gmt":"2007-07-15T14:43:13","guid":{"rendered":"http:\/\/www.whistleblowerlawyerblog.com\/2007\/07\/irs_tax_whistleblowers_with_kn.html"},"modified":"2021-06-11T17:54:00","modified_gmt":"2021-06-11T21:54:00","slug":"irs_tax_whistleblowers_with_kn","status":"publish","type":"post","link":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/irs_tax_whistleblowers_with_kn\/","title":{"rendered":"IRS Declares That Tax Fraud and Evasion from Back-Dating of Stock Options Is a Top Priority"},"content":{"rendered":"

IRS Tax Whistleblowers with Knowledge of Stock Option Backdating Should Take Note<\/strong><\/p>\n

Now that the IRS has an effective IRS Whistleblower Rewards Program<\/a> for whistleblowers who report tax fraud, tax evasion, or other violations of the Internal Revenue laws, the IRS’ recent announcement of focusing on back-dating of stock options should be interesting. In continuing our past discussions of claims under the IRS Whistleblower Rewards Program<\/a>, we point out the tax fraud that the IRS has decided to target involving back-dated stock options.<\/p>\n

The IRS recently announced that backdating of stock options is a “Tier I Compliance Issue and therefore is a mandatory examination item for taxpayers with backdated stock option grant and\/or exercise prices.” <\/p>\n

This unlawful practice can produce adverse tax consequences for the corporation issuing the option. As the IRS announcement explains, corporations are subject to a $1 million annual limit on the deduction for compensation to the CEO and four other highest compensated officers in a publicly traded corporation. <\/p>\n

Under Treasury Regulations section 1.162-27(e)(2)(vi), there is a “qualified performance based compensation” exception to the $1 million deduction limit for compensation attributable to option exercises if the option exercise price equals or exceeds the per share value on the grant date and certain other requirements are met. A failure to satisfy this requirement may cause compensation attributable to the option exercise to be subject to the $1 million deduction limit.
\n Continue reading \u2192<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

IRS Tax Whistleblowers with Knowledge of Stock Option Backdating Should Take Note Now that the IRS has an effective IRS Whistleblower Rewards Program for whistleblowers who report tax fraud, tax evasion, or other violations of the Internal Revenue laws, the IRS’ recent announcement of focusing on back-dating of stock options should be interesting. In continuing […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3],"tags":[],"class_list":["post-80","post","type-post","status-publish","format-standard","hentry","category-irs-whistleblower-program-for-tax-whistleblowers","category-recent-developments"],"yoast_head":"\nIRS Declares That Tax Fraud and Evasion from Back-Dating of Stock Options Is a Top Priority — Whistleblower Lawyer Blog — July 15, 2007<\/title>\n<meta name=\"description\" content=\"IRS Tax Whistleblowers with Knowledge of Stock Option Backdating Should Take Note Now that the IRS has an effective IRS Whistleblower Rewards Program for — July 15, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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