IRS Issues Final ESPP Regulation And Reporting Requirements For ISOs And ESPPs

The IRS recently issued a final regulation (the "ESPP Final Regulation") relating to options granted under an employee stock purchase plan (an "ESPP") as defined in Section 423 of the Internal Revenue Code, as amended (the "Code"), and a final regulation (the "Reporting Regulation") regarding the reporting requirements for incentive stock options granted under Section 422 of the Code ("ISOs") and ESPPs.  Some of the key provisions and changes contained in the ESPP Final Regulation and the Reporting Regulation are:

• Determination of the ESPP option grant date is contingent on whether the plan or offering designates a maximum number of shares that may be purchased by each employee during the offering