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NASPP Essentials

US Tax Withholding and Reporting for Stock Compensation
Dec 03,2019

Where participants recognize compensation income in connection with stock compensation, the company has a reporting obligation with respect to this income and is also sometimes required to withhold taxes on the income. This article summarizes the U.S. tax withholding and reporting requirements for stock compensation.

Latest Developments


Stock Options in Divorce
Mar 01,2005

While compensatory stock options are not considered property for general tax purposes, they are generally viewed as assets subject to equitable distribution in matrimonial situations. As a result, property settlements in a divorce often address stock options held by one of the spouses, and they generally provide for one of the following outcomes: option retention, option transfer, or assignment of option proceeds. Each of these alternatives has the potential to produce different tax results. For the option transfer approach, recent IRS actions have greatly simplified the tax consequences. This article discusses these alternatives and their attendant tax consequences.


Dividing Stock Compensation in Divorce
Feb 12,2016
Jennifer Namazi

Dividing Stock Compensation in Divorce


2019 Tax Reporting Essentials
Dec 04,2019

Everything you need to know about U.S. year-end tax reporting!

Annual Tax Reporting Webcast
Dec 04,2018

Everything you need to know about U.S. year-end tax reporting!

2017 Annual Tax Reporting Webcast
Dec 05,2017

Everything you need to know about U.S. year-end tax reporting!

Regulations & Statutes

Instructions to Form 1099-MISC and Form 1099-NEC
Aug 02,2020

IRS instructions for completing Form 1099-MISC.

Rev. Rul. 2004-60 - Taxation of Stock Options and NQDC in Divorce
Jul 14,2004

This ruling concludes that NQSOs and NQDC transferred by an employee to a former spouse incident to a divorce are subject to FICA, FUTA, and income tax withholding to the same extent as if retained by the employee. The ruling also provides reporting requirements applicable to the wage payments.

Rev. Rul. 2002-22
May 13,2002

This ruling concludes that a taxpayer who transfers NQSOs and NQDC to a former spouse incident to divorce is not required to recognize income upon the transfer. Instead, the former spouse recognizes income when he/she exercises the stock options or when the deferred compensation is paid.

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The National Association of Stock Plan Professionals is the largest and oldest professional association for the stock and executive compensation community, with over two decades of leadership providing expert resources, education and other benefits for our more than 6,000 members across 32 affiliated chapters.


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