Browse Arkansas Code titles and sections
26 U.S.C. § 6039 — Returns required in connection with certain options
Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirement of reporting** Every corporation—
(1) which in any calendar year transfers to any person a share of stock pursuant to such person’s exercise of an incentive stock option, or
(2) which in any calendar year records (or has by its agent recorded) a transfer of the legal title of a share of stock acquired by the transferor pursuant to his exercise of an option described in section 423(c) (relating to special rule where option price is between 85 percent and 100 percent of value of stock),
shall, for such calendar year, make a return at such time and in such manner, and setting forth such information, as the Secretary may by regulations prescribe.
**(b) Statements to be furnished to persons with respect to whom information is reported** Every corporation making a return under subsection (a) shall furnish to each person whose name is set forth in such return a written statement setting forth such information as the Secretary may by regulations prescribe. The written statement required under the preceding sentence shall be furnished to such person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made.
**(c) Special rules** For purposes of this section—
(1) **Treatment by employer to be determinative** — Any option which the corporation treats as an incentive stock option or an option granted under an employee stock purchase plan shall be deemed to be such an option.
(2) **Subsection (a)(2) applies only to first transfer described therein** — A statement is required by reason of a transfer described in subsection (a)(2) of a share only with respect to the first transfer of such share by the person who exercised the option.
(3) **Identification of stock** — Any corporation which transfers any s
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6039
Stored review status: release_metadata_unconfirmed. A text match is a research starting point; applicability is not established.
Original supplied file — preserved unchanged
Download original Markdown file
File SHA-256: e0a3d109733cb713bf043a215139a18fdcf341f124e3f144397665b8eafc8022. The original may include catalog metadata, neighboring provisions, or embedded records outside this collection's scope. Search shows only the selected federal record. Historical editions and unverified snapshots are not a statement of current law.
Authority boundary: historical or unconfirmed source not current law verified.
Open the recorded source website ↗
Record provenance
Stable record: federal_law:legal_authorities:record_usc_fa9c63b57234dbaea12f2b70
Source file: Laws/federal/codes/united-states-code/title-26/section-6039-returns-required-in-connection-with-certain-options--78cb97e3a0.md
Pages: Not recorded – Not recorded
Passage SHA-256: 60f3d9baf9a5331408a189059e9954600f7f098ea288b387c89561daf1b0e573
Source location: Title 26, Chapter 61, § 6039; chapter-061-information-and-returns.md
Stored source content
**(a) Requirement of reporting** Every corporation—
(1) which in any calendar year transfers to any person a share of stock pursuant to such person’s exercise of an incentive stock option, or
(2) which in any calendar year records (or has by its agent recorded) a transfer of the legal title of a share of stock acquired by the transferor pursuant to his exercise of an option described in section 423(c) (relating to special rule where option price is between 85 percent and 100 percent of value of stock),
shall, for such calendar year, make a return at such time and in such manner, and setting forth such information, as the Secretary may by regulations prescribe.
**(b) Statements to be furnished to persons with respect to whom information is reported** Every corporation making a return under subsection (a) shall furnish to each person whose name is set forth in such return a written statement setting forth such information as the Secretary may by regulations prescribe. The written statement required under the preceding sentence shall be furnished to such person on or before January 31 of the year following the calendar year for which the return under subsection (a) was made.
**(c) Special rules** For purposes of this section—
(1) **Treatment by employer to be determinative** — Any option which the corporation treats as an incentive stock option or an option granted under an employee stock purchase plan shall be deemed to be such an option.
(2) **Subsection (a)(2) applies only to first transfer described therein** — A statement is required by reason of a transfer described in subsection (a)(2) of a share only with respect to the first transfer of such share by the person who exercised the option.
(3) **Identification of stock** — Any corporation which transfers any share of stock pursuant to the exercise of any option described in subsection (a)(2) shall identify such stock in a manner adequate to carry out the purposes of this section.
**(d) Cross references** For definition of—
(1) the term “incentive stock option”, see section 422(b), and
(2) the term “employee stock purchase plan”, see section 423(b).
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Reasonable cause waiver** No penalty shall be imposed under this part with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.
**(b) Payment of penalty** Any penalty imposed by this part shall be paid on notice and demand by the Secretary and in the same manner as tax.
**(c) Special rule for failure to meet magnetic media requirements** No penalty shall be imposed under section 6721 solely by reason of any failure to comply with the requirements of the regulations prescribed under section 6011(e)(2), except to the extent that such a failure occurs with respect to more than the applicable number (determined under section 6011(e)(5) with respect to the calendar year to which such returns relate) of information returns or with respect to a return described in section 6011(e)(4).
**(d) Definitions** For purposes of this part—
(1) **Information return** — The term “information return” means—
(A) any statement of the amount of payments to another person required by—
(i) section 6041(a) or (b) (relating to certain information at source),
(ii) section 6042(a)(1) (relating to payments of dividends),
(iii) section 6044(a)(1) (relating to payments of patronage dividends),
(iv) section 6049(a) (relating to payments of interest),
(v) section 6050A(a) (relating to reporting requirements of certain fishing boat operators),
(vi) section 6050N(a) (relating to payments of royalties),
(vii) section 6051(d) (relating to information returns with respect to income tax withheld),
(viii) section 6050R (relating to returns relating to certain purchases of fish), or
(ix) section 110(d) (relating to qualified lessee construction allowances for short-term leases),
(B) any return
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6724
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** Section 421(a) shall apply with respect to the transfer of a share of stock to an individual pursuant to his exercise of an incentive stock option if—
(1) no disposition of such share is made by him within 2 years from the date of the granting of the option nor within 1 year after the transfer of such share to him, and
(2) at all times during the period beginning on the date of the granting of the option and ending on the day 3 months before the date of such exercise, such individual was an employee of either the corporation granting such option, a parent or subsidiary corporation of such corporation, or a corporation or a parent or subsidiary corporation of such corporation issuing or assuming a stock option in a transaction to which section 424(a) applies.
**(b) Incentive stock option** For purposes of this part, the term “incentive stock option” means an option granted to an individual for any reason connected with his employment by a corporation, if granted by the employer corporation or its parent or subsidiary corporation, to purchase stock of any of such corporations, but only if—
(1) the option is granted pursuant to a plan which includes the aggregate number of shares which may be issued under options and the employees (or class of employees) eligible to receive options, and which is approved by the stockholders of the granting corporation within 12 months before or after the date such plan is adopted;
(2) such option is granted within 10 years from the date such plan is adopted, or the date such plan is approved by the stockholders, whichever is earlier;
(3) such option by its terms is not exercisable after the expiration of 10 years from the date such option is granted;
(4) the option price is not less than the fair market value of t
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 422
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Returns with respect to certain payments aggregating less than $10** In the case of each failure to file a statement of a payment to another person required under the authority of—
(1) section 6042(a)(2) (relating to payments of dividends aggregating less than $10), or
(2) section 6044(a)(2) (relating to payments of patronage dividends aggregating less than $10),
on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be paid (upon notice and demand by the Secretary and in the same manner as tax) by the person failing to so file the statement, $1 for each such statement not so filed, but the total amount imposed on the delinquent person for all such failures during the calendar year shall not exceed $1,000.
**(b) Failure to report tips** In the case of failure by an employee to report to his employer on the date and in the manner prescribed therefor any amount of tips required to be so reported by section 6053(a) which are wages (as defined in section 3121(a)) or which are compensation (as defined in section 3231(e)), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be paid by the employee, in addition to the tax imposed by section 3101 or section 3201 (as the case may be) with respect to the amount of tips which he so failed to report, an amount equal to 50 percent of such tax.
**(c) Returns by exempt organizations and by certain trusts**
(1) **Annual returns under section 6033(a)(1) or 6012(a)(6)**
(A) *Penalty on organization* — In the case of—
(i) a failure to file a return required under section 6033(a)(1) (relating to returns by exempt organization
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6652
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
(1) For the notice required of persons acting in a fiduciary capacity for taxpayers or for transferees, see sections 6212, 6901(g), and 6903.
(2) For application by fiduciary for determination of tax and discharge from personal liability therefor, see section 2204.
(3) For the notice required of taxpayers for redetermination of taxes claimed as credits, see sections 905(c) and 2016.
(4) For exemption certificates required to be furnished to employers by employees, see section 3402(f)(2), (3), (4), and (5).
(5) For receipts, constituting information returns, required to be furnished to employees, see section 6051.
(6) Repealed. Pub. L. 89–44, title III, § 305(b), June 21, 1965, 79 Stat. 148]
(7) For information required with respect to the redemption of stamps, see section 6805.
(8) For the statement required to be filed by a corporation expecting a net operating loss carryback or unused excess profits credit carryback, see section 6164.
(9) For the application, which a taxpayer may file for a tentative carryback adjustment of income taxes, see section 6411.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6040
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Effect of qualifying transfer** If a share of stock is transferred to an individual in a transfer in respect of which the requirements of section 422(a) or 423(a) are met—
(1) no income shall result at the time of the transfer of such share to the individual upon his exercise of the option with respect to such share;
(2) no deduction under section 162 (relating to trade or business expenses) shall be allowable at any time to the employer corporation, a parent or subsidiary corporation of such corporation, or a corporation issuing or assuming a stock option in a transaction to which section 424(a) applies, with respect to the share so transferred; and
(3) no amount other than the price paid under the option shall be considered as received by any of such corporations for the share so transferred.
**(b) Effect of disqualifying disposition** If the transfer of a share of stock to an individual pursuant to his exercise of an option would otherwise meet the requirements of section 422(a) or 423(a) except that there is a failure to meet any of the holding period requirements of section 422(a)(1) or 423(a)(1), then any increase in the income of such individual or deduction from the income of his employer corporation for the taxable year in which such exercise occurred attributable to such disposition, shall be treated as an increase in income or a deduction from income in the taxable year of such individual or of such employer corporation in which such disposition occurred. No amount shall be required to be deducted and withheld under chapter 24 with respect to any increase in income attributable to a disposition described in the preceding sentence.
**(c) Exercise by estate**
(1) **In general** — If an option to which this part applies is exercised after the death o
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 421
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 3343
TITLE 26—INTERNAL REVENUE CODE
§ 6039
priate to carry out the purposes of this section,
including regulations or other guidance which
provide appropriate exceptions from the applica-
tion of this section in the case of—
(1) classes of assets identified by the Sec-
retary, including any assets with respect to
which the Secretary determines that disclo-
sure under this section would be duplicative of
other disclosures,
(2) nonresident aliens, and
(3) bona fide residents of any possession of
the United States.
(Added Pub. L. 111–147, title V, § 511(a), Mar. 18,
2010, 124 Stat. 109.)
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Pub. L. 111–147, title V, § 511(c), Mar. 18, 2010, 124 Stat.
110, provided that: ‘‘The amendments made by this sec-
tion [enacting this section] shall apply to taxable years
beginning after the date of the enactment of this Act
[Mar. 18, 2010].’’
§ 6038E. Information with respect to assignment
of lower rates or refunds by foreign pro-
ducers of beer, wine, and distilled spirits
Any foreign producer that elects to make an
assignment described in section 5001(c), 5041(c),
or 5051(a) shall provide such information, at
such time and in such manner, as the Secretary
may prescribe in order to make such assign-
ment, including information about the con-
trolled group structure of such foreign producer.
(Added Pub. L. 116–260, div. EE, title I, § 107(d)(1),
Dec. 27, 2020, 134 Stat. 3048.)
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Pub. L. 116–260, div. EE, title I, § 107(d)(3), Dec. 27,
2020, 134 Stat. 3048, provided that: ‘‘The amendments
made by this subsection [enacting ths section] shall
apply to elections to make an assignment under section
5001(c), 5041(c), or 5051(a) of the Internal Revenue
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 6039
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.