2018 – 12/10 The IRS has provided guidance on a new deferral option for certain stock-based compensation. The option was added by the Tax Cuts and Jobs Act. It allows qualified employees of privately held corporations to defer paying income tax for up to 5 years on the value of qualified stock options and restricted stock units granted to them by employers. Generally, highly compensated officers and some others can’t make the election. Taxpayers can rely on guidance provided in Notice 2018-97 until proposed regulations are issued. Read the notice here:

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