ISOs.

• Author: Laffie, Lesli S.
• Position: Regulations

The IRS issued new proposed regulations (REG-122917-02) on incentive stock options (ISOs), under Secs. 421, 422 and 424, retaining some of the rules issued in 1984 and expanding on others. There are also some changes to existing final regulations under Secs. 421 and 424.

The proposed regulations would apply 180 days after publication of final regulations. Taxpayers may rely on the proposed rules for any ISO granted after June 9, 2003.

The reduction in...