Haynes and Boone's Newsroom

Final Incentive Stock Option Regulations
09/07/2004
John M. Collins, Greta E. Cowart, Charles F. Plenge, Jesse J. Gelsomini, Susan A. Wetzel, Marilyn C. Doolittle, Tiffany Walker

After twenty years, the Internal Revenue Service has issued new final rules providing guidance on incentive stock options (“ISOs”).  The Final Regulations generally were effective on August 3, 2004, but certain transition rules are available for existing ISOs and those granted prior to 2006.  After December 31, 2005, all ISOs must comply with these Final Regulations.