IRS Notice 2004-55 Seeking Comment on Need for More GuidanceOn Options Granted Under Employee Stock Purchase

IRS Notice 2004-55 Seeking Comment on Need for More Guidance On Options Granted Under Employee Stock Purchase PlansThis notice is scheduled to appear in Internal Revenue Bulletin 2004-34, dated Aug. 9, 2004. Part III Administrative, Procedural, and Miscellaneous Options Granted under an Employee Stock Purchase Plans (ESPP) Notice 2004-55 I. PURPOSE Since the issuance of proposed regulations concerning incentive stock options (ISO's) on June 9, 2003 1(68 FR 34,344), the Internal Revenue Service and Treasury Department have received questions concerning whether the final regulations concerning options granted under an employee stock purchase plan (ESPP) should be interpreted consistently with the proposed ISO regulations. The Service and the Treasury Department are considering whether to amend the final regulations under § 423 of the Internal Revenue Code. The Service and Treasury invite public comment concerning whether the final regulations under § 423 (the rules governing ESPP's) should be amended, and if so, what issues should be addressed or clarified. II BACKGROUND Section 423 of the Code was added to the Code by section 221(a) of the Revenue Act of 1964, Public Law No. 88-272. Changes to the applicable law concerning section 423 of the Code were made by section 11801 of the Omnibus Budget Reconciliation Act of 1989, Public Law 101-508; section 1114 of the Tax Reform Act of 1986, Public Law No. 99-514; section 1001 of the Deficit ...