IRS Logo
Print - Click this link to Print this page

Attachment 1 - Proforma Backdated Stock Options IDR

  1. Please provide copies of final or preliminary SEC reports or filings, internal audit reports, independent investigation reports and any other reports relating to the company’s practices concerning the grant or exercise of stock options, including the backdating of stock options. Include initial contact letter, correspondence, information requested, information provided, and report of findings.
  2. Were any of the stock option grants that were the subject of these investigations exercised during the year(s) under examination, including nonstatutory stock options (NSOs) subject to taxation under IRC section 83 and incentive stock options (ISOs) as defined in IRC section 422?
  3. If question 2 is answered “Yes”, please provide the following information for ALL stock option grants that were exercised during the years under examination by each covered employee, as described in Treasury Regs. section 1.162-27(c)(2), and as identified in the TAXPAYER’s Summary Compensation Table filed with SEC reports for years XXXX through XXXX.

    a. Individual name/position
    b. Date the necessary corporate action was completed for the grant of
        the stock option.
    c. Effective date (or backdate) of stock option grant.
    d. Fair market value [FMV] of underlying stock on each date reported 
        for b and c above.
    e. Exercise price for each stock option grant.
    f.  Exercise date for each stock option grant reported above.
    g. Fair market value of underlying stock on exercise date(s) reported
        above.
    h. Income tax deduction claimed for compensation reported on 
        exercised options including Section 162(m) computations.  

  4. If no to 2 above, please provide the year(s) the grants were exercised?  


 

Page Last Reviewed or Updated: 27-Nov-2013