The Internal Revenue Service is examining as many as 40 companies -- investigating the appropriateness of deductions for backdated stock options, as well as the reporting of income by affected executives and the relevance of the laws governing Incentive Stock Options.

According to published reports, in recent weeks, the agency has told its corporate auditors to start reviewing the tax returns of dozens of executives and companies which may have improperly reported stock option grants. The preliminary investigations are expected to take months and appears aimed at both companies that took improper tax deductions, as well as executives who might have misreported income.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access