Equity Compensation - Tax Reporting
Author: Daniel Johnson
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
This in-depth course explores the complexities of executive compensation, with a particular focus on taxation and reporting mechanisms for various compensation structures. Students will explore the nuances between incentive stock options (ISOs) and nonqualified stock options (NQSOs), and examine the tax implications and reporting protocols for restricted stock awards/units, stock appreciation rights (SARs), and phantom stock plans. The curriculum also covers the interpretation of relevant tax forms and schedules, common pitfalls in tax reporting, and techniques for managing extensions, estimated taxes, and heightened IRS scrutiny.
Publication Date: August 2024
Topics Covered
- Nonqualified Stock Options (NQSOs)
- Incentive Stock Options (ISOs)
- Restricted Stock / Restricted Stock Units (RSUs)
- Stock Appreciation Rights (SARs) & Phantom Stock
- Stock Sale Reporting
- Estimated Tax Payments
- Filing Deadlines
- State Taxes
Learning Objectives
- Identify how to compare and contrast the tax treatment of incentive stock options (ISOs) and nonqualified stock options (NQSOs)
- Identify how to evaluate the tax considerations and reporting mechanisms for restricted stock awards and units
- Identify how to assess the differences in taxation and reporting between stock appreciation rights (SARs) and traditional stock options
- Identify the tax implications and reporting requirements for phantom stock plans
- Identify how to critically analyze tax forms and schedules used in reporting executive compensation
- Identify and mitigate common errors in tax reporting for executive compensation plans
- Identify strategies for effective stock sale reporting, estimated tax payments, management of filing deadlines and extensions, and navigation of state tax obligations
Level
Advanced
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
Prior knowldge of Equity Tax Reporting
Advance Preparation
None
