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Variable prepaid forward contracts will be scrutinized by IRS.(ENFORCEMENT)
Kiplinger Tax Letter, The, March, 2008
Tags: Internal Revenue Service, stock
Variable prepaid forward contracts will be scrutinized by IRS. These are stock purchase agreements for executives with appreciated stock who want to monetize their holdings. Typically, the executive contracts with a lender to deliver a variable number of shares in a few years in exchange for an up-front cash payment.
The goal is to defer any tax on the payment until the end of the ...
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