26 U.S.C. § 6039 — Returns required in connection with certain options

submitted 62 years ago by Pub. L. 88-272 to r/title-26-INTERNAL-REVENUE-CODE · 351 words · no verdicts yet

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This section requires corporations to report certain stock transfers connected with incentive stock options and employee stock-purchase plans. It requires statements to the affected people and provides identification and definition rules.

(a) Every corporation that in a calendar year transfers stock on a person's exercise of an incentive stock option, or records a legal-title transfer of stock acquired through an option described in section 423(c), must file a return for that year at the time, in the way, and with the information regulations require. (b) The corporation must give each person named in the return a written statement containing the required information by January 31 of the following year. (c)(1) An option the corporation treats as an incentive stock option or employee stock-purchase-plan option is treated as that type. (2) For a section (a)(2) transfer, a statement is required only for the person's first transfer of that share. (3) A corporation transferring stock under such an option must identify it adequately for this section. (d) “Incentive stock option” is defined in section 422(b), and “employee stock purchase plan” in section 423(b).

the actual law source: uscode.house.gov ↗public domain

(a) Requirement of reporting

Every corporation—

(1)

which in any calendar year transfers to any person a share of stock pursuant to such person’s exercise of an incentive stock option, or

(2)

which in any calendar year records (or has by its agent recorded) a transfer of the legal title of a share of stock acquired by the transferor pursuant to his exercise of an option described in section 423(c) (relating to special rule where option price is between 85 percent and 100 percent of value of stock),

shall, for such calendar year, make a return at such time and in such manner, and setting forth such information, as the Secretary may by regulations prescribe.

(b) Statements to be furnished to persons with respect to whom information is reported

Every corporation making a return under subsection (a) shall furnish to each person whose name is set forth in such return a written statement setting forth such information as the Secretary may by regulations prescribe. The written statement required under the preceding sentence shall be furnished to such person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made.

For purposes of this section—

(1) Treatment by employer to be determinative

Any option which the corporation treats as an incentive stock option or an option granted under an employee stock purchase plan shall be deemed to be such an option.

(2) Subsection (a)(2) applies only to first transfer described therein

A statement is required by reason of a transfer described in subsection (a)(2) of a share only with respect to the first transfer of such share by the person who exercised the option.

(3) Identification of stock

Any corporation which transfers any share of stock pursuant to the exercise of any option described in subsection (a)(2) shall identify such stock in a manner adequate to carry out the purposes of this section.

(d) Cross references

For definition of—

(1)

the term “incentive stock option”, see section 422(b), and

(2)

the term “employee stock purchase plan”, see section 423(b).

Source credit: (Added Pub. L. 88–272, title II, § 221(b)(1), Feb. 26, 1964, 78 Stat. 73; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–167, § 7(a), Dec. 29, 1979, 93 Stat. 1276; Pub. L. 97–34, title II, § 251(b)(5), Aug. 13, 1981, 95 Stat. 259; Pub. L. 101–508, title XI, § 11801(c)(9)(J), Nov. 5, 1990, 104 Stat. 1388–526; Pub. L. 105–206, title VI, § 6023(20), July 22, 1998, 112 Stat. 825; Pub. L. 109–432, div. A, title IV, § 403(a), (b), (c)(3), (4), Dec. 20, 2006, 120 Stat. 2954, 2955; Pub. L. 115–141, div. U, title IV, § 401(a)(259), Mar. 23, 2018, 132 Stat. 1196.)

history & why it existsrecord from the source credit

1964Enacted · Pub. L. 88-272 · 78 Stat. 73
1976Amended · Pub. L. 94-455 · 90 Stat. 1834
1979Amended · Pub. L. 96-167 · 93 Stat. 1276
1981Amended · Pub. L. 97-34 · 95 Stat. 259
1990Amended · Pub. L. 101-508 · 104 Stat. 1388
1998Amended · Pub. L. 105-206 · 112 Stat. 825
2006Amended · Pub. L. 109-432 · 120 Stat. 2954, 2955
2018Amended · Pub. L. 115-141 · 132 Stat. 1196

A history note hasn’t been published yet. The record shows enactment by Pub. L. 88-272 on 1964-02-26.

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