[20030130]RS20874_税收和激励性股票期权.pdf

1 “Some Shocked at Tax Bills on Options,” by Carrie Johnson, Washington Post, March 16, 2001,p. E1. 2 Another issue that had been raised about statutory stock options is whether the IRS wouldrequire employers to withhold income and social security taxes on exercise or disposition. Thesocial security tax issue was less important when there was a ceiling on medicare taxes and whenoptions tended to be confined largely to higher income individuals. This issue was settledtemporarily when the IRS issued ruling 2001-14 on February 5, 2001, indicating that nowithholding would be imposed before 2003; on June 25, 2002, the IRS indicated that it decidedto abandon proposals to withhold these taxes. Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS20874Updated January 30, 2003Taxes and Incentive Stock OptionsJane G. GravelleSenior Specialist in Economic PolicyGovernment and Finance DivisionSummaryCases of individuals who have incurred large tax liabilities from the exercise ofstock options and who, because of falling stock prices, had no earnings have causedsome concern. This effect arises from the impact of the alternative mi