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5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.
From Spencer's Benefits Reports: The Internal Revenue Service has issued proposed regulations governing the return and information statement requirements under IRC Sec. 6039 that reflect changes to that section made by the Tax Relief and Health Care Act of 2006. The proposed regulations, which relate to statutory stock options, appeared in the July 17 Federal Register.
Sec. 403 of the 2006 law amended the information reporting requirements of Sec. 6039. Prior to amendment, Sec. 6039 required corporations to furnish a written statement to each employee, in a manner prescribed by the IRS in regulations, regarding: (1) the corporation’s transfer of stock pursuant to the employee’s exercise of an incentive stock option described in IRC Sec. 422(b); and (2) the transfer of stock by the employee where the stock was acquired pursuant to the exercise of an option described in IRC Sec. 423(c). Corporations must furnish employees with the information statements required by Sec. 6039 on or before January 31 of the year following the year for which the statement is required.
As amended by the 2006 law, Sec. 6039 requires corporations to file an information return with the IRS following a stock transfer, in addition to providing employees with an information statement. Sec. 6039, as amended, applies to stock transfers occurring on or after Jan. 1, 2007. However, in Notice 2008-8, I.R.B. 2008-3, 276, the IRS waived the obligation to file an information return for 2007 stock transfers governed by Sec. 6039.
The proposed regulations describe the information that would be required in the return filed with the IRS and the information statement furnished to employees pursuant to Sec. 6039. In the preamble to the regulations, the IRS explains, “In crafting these proposed regulations, one principal objective was to require corporations to furnish employees with sufficient information to enable them to calculate their tax obligations upon disposition of the shares acquired by the exercise of a statutory option. Under these proposed regulations, essentially the same information would be reported with respect to the transfer of stock pursuant to the exercise of an incentive stock option and the transfer of stock acquired pursuant to an employee stock purchase plan.”
With respect to a transfer of stock upon the exercise of an incentive stock option, the information required to be furnished to employees under the proposed regulations generally would be the same as that required under existing Reg. Sec. 1.6039-1. With respect to an employee’s transfer of stock acquired under an employee stock purchase plan, the proposed regulations would require that additional information be included in the information return furnished to employees. The IRS states that it will issue two forms with instructions that corporations must use to satisfy the return and information statement requirements under Sec. 6039.
Written comments on the proposed regulations and requests for a public hearing must be submitted by October 15 to: CC:PA:LPD:PR (REG-103146-08), Room 5203, IRS, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Comments also may be submitted electronically via the Internet to http://www.regulations.gov (IRS REG-103146-08). For further information concerning the proposed regulations, contact Thomas Scholz at (202) 622-6030; for further information concerning submissions of comments and/or to request a hearing, contact Richard Hurst via e-mail at Richard.A.Hurst@irscounsel.treas.gov.
For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.
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