Treasury, IRS issue final stock option regulations - Treasury News - Brief Article

California CPA, Oct, 2003

The Treasury Department and the IRS recently issued final regulations affecting tax treatment of stock-based compensation under the related party transfer pricing rules governing qualified cost sharing arrangements.

For an arrangement to be considered a qualified cost sharing arrangement, participants must share all costs related to the development of intangibles in the same proportion as they share reasonably anticipated benefits attributable to the intangible development, the regulations says.

The final regulations clarify that stock-based compensation, like other forms of compensation, is taken into account in determining the costs of a participant.

View the release at www.ustreas.gov/ press/releases/js674.htm