The NASPP Blog

Since it is a holiday week, my blog entry for today is on the lighter side.  I recently acquired a new file cabinet, which gave me occasion to reorganize some of my files. While going through some of them, I came across some old documents which I found interesting. I thought some of my readers might find them interesting as well.

A page from a 1994 ShareData newsletter; the entire issue is focused on fighting FAS 123. It includes information on the Coalition for American Equity Expansion, formed to oppose the standard; discussion of the Equity Expansion Act, which would have required the SEC to maintain the then-current accounting treatment of options (including lists of companies and representatives supporting the Act); point-by-point rejection of the FASB’s proposal; and an FAQ on something called “performance stock options,” which were a type of qualified stock option included in Equity Expansion Act. Ah, those were the days.

For years, we worried that ISO and ESPP disqualifying dispositions were subject to withholding (and that purchases in these plans were subject to FICA). Here are two articles on this topic that appeared in the The Tax Journal, published in 1990 and 1995. The matter wasn’t resolved until passage of the American Jobs Creation Act in 2005 (in case you aren’t sure, withholding isn’t required).

I have been looking for this form for at least ten years. It is a form companies can ask employees to complete to attest that they included income on their tax return. It can be used to potentially mitigate the penalties the company would otherwise be subject to for failing to withhold taxes. I couldn’t remember the name or number of the form, so I couldn’t find it on the IRS website; I should have known to check my own files because I save everything. I had ten copies of it at the back of my “Taxation – General” file (as opposed to the 12 other tax-related files that I have).

The Taxpayer Relief Act of 1997 was a big deal when it was enacted–who remembers what it did? While we’re at it, who remembers PaineWebber and whatever happened to it?

Answer:  The Taxpayer Relief Act of 1997 reduced the long-term capital gains rate from 28% to 20%. PaineWebber was acquired by UBS in 2000. My files are filled with articles from companies that no longer exist.

Remember when all companies were going to adopt transferable stock option programs? I do. In fact, I have a whole, albeit relatively thin, file folder on it. So if it ever happens, I’m ready (did I mention that I save everything, forever).

Kaylee the Cat helped me sort through my to-be-filed pile. Here she reviews handouts from recent presentations to determine what category they should be filed under. I guess the thought of mobility compliance has made her a bit wistful.

I hope you all are enjoying the holiday season and that you have a fabulous new year! May all your files be well-organized and your file cabinet drawers open with ease.

– Barbara