IRS Relieves Workers In Backdating Scandal

Law360, New York (February 9, 2007, 12:00 AM EST) -- Unsuspecting employees faced with hefty tax bills for backdated stock options have been offered a reprieve by the taxman.

The Internal Revenue Service has announced a program for bosses to step up and pay the additional taxes of hundreds of thousands of workers awarded fraudulent company stock options last year.

Called the compliance resolution program, it offers relief only to rank-and-file employees who were unaware they held backdated options, not to corporate executives or insiders.

Under current federal tax laws governing deferred compensation, workers who exercised...
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