US Laws, Codes, Statutes & Cases

From the U.S. Code Online via GPO Access
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[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
  January 7, 2003 and December 19, 2003]
[CITE: 26USC6039]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                   CHAPTER 61--INFORMATION AND RETURNS
 
                    Subchapter A--Returns and Records
 
                      PART III--INFORMATION RETURNS
 
 Subpart A--Information Concerning Persons Subject to Special Provisions
 
Sec. 6039. Information required in connection with certain 
        options
        

(a) Furnishing of information

    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 (on or before January 31 of the following calendar year) furnish 
to such person a written statement in such manner and setting forth such 
information as the Secretary may by regulations prescribe.

(b) 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.

(c) Cross references

            For definition of--
                (1) the term ``incentive stock option'', see section 
            422(b), and
                (2) the term ``employee stock purchase plan'' \1\ see 
            section 423(b).
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    \1\ So in original. Probably should be followed by a comma.
---------------------------------------------------------------------------

(Added Pub. L. 88-272, title II, Sec. 221(b)(1), Feb. 26, 1964, 78 Stat. 
73; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 
1976, 90 Stat. 1834; Pub. L. 96-167, Sec. 7(a), Dec. 29, 1979, 93 Stat. 
1276; Pub. L. 97-34, title II, Sec. 251(b)(5), Aug. 13, 1981, 95 Stat. 
259; Pub. L. 101-508, title XI, Sec. 11801(c)(9)(J), Nov. 5, 1990, 104 
Stat. 1388-526; Pub. L. 105-206, title VI, Sec. 6023(20), July 22, 1998, 
112 Stat. 825.)


                            Prior Provisions

    A prior section 6039 was renumbered section 6040 of this title.


                               Amendments

    1998--Subsec. (a)(1). Pub. L. 105-206 inserted ``to any person'' 
after ``transfers''.
    1990--Subsec. (a)(1), (2). Pub. L. 101-508, Sec. 11801(c)(9)(J)(i), 
added pars. (1) and (2) and struck out former pars. (1) and (2) which 
read as follows:
    ``(1) which in any calendar year transfers a share of stock to any 
person pursuant to such person's exercise of a qualified stock option, 
an incentive stock option, or a restricted 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--
        ``(A) acquired by the transfer or 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), or
        ``(B) acquired by the transferor pursuant to his exercise of a 
    restricted stock option described in section 424(c)(1) (relating to 
    options under which option price is between 85 percent and 95 
    percent of value of stock),''.
    Subsec. (b)(1). Pub. L. 101-508, Sec. 11801(c)(9)(J)(ii), 
substituted ``an incentive stock option or an'' for ``a qualified stock 
option, incentive stock option, a restricted stock option, or an''.
    Subsec. (c). Pub. L. 101-508, Sec. 11801(c)(9)(J)(iii), amended 
subsec. (c) generally, striking out references for definitions of 
``qualified stock option'' and ``restricted stock option''.
    1981--Subsec. (a)(1). Pub. L. 97-34, Sec. 251(b)(5)(A), inserted ``, 
an incentive stock option,'' after ``qualified stock option''.
    Subsec. (b)(1). Pub. L. 97-34, Sec. 251(b)(5)(B), inserted 
``incentive stock option,'' after ``qualified stock option,''.
    Subsec. (c)(4). Pub. L. 97-34, Sec. 251(b)(5)(C), added par. (4).
    1979--Subsec. (a). Pub. L. 96-167 substituted ``Furnishing of 
information'' for ``Requirement of reporting'' in heading, and in 
closing par. substituted provisions relating to the furnishing, on or 
before Jan. 31 of the following calendar year, a written statement in 
such manner and setting forth such information, as prescribed by 
regulation for provisions prescribing the making of a return at such 
time and in such manner as prescribed by regulation, determining 
qualified stock options, restricted stock options or options granted 
under an employee stock purchase plan to be options under the provisions 
of this section, and restricting the necessity of a return only to the 
first transfer of such share.
    Subsec. (b). Pub. L. 96-167 added subsec. (b). Former subsec. (b), 
requiring every corporation making a return to furnish each person named 
in the return a written statement setting forth such information as 
prescribed by regulation, and requiring such statement to be furnished 
before January 31 of the year following the calendar year for which the 
return was made, was struck out.
    Subsec. (c). Pub. L. 96-167 redesignated subsec. (d) as (c). Former 
subsec. (c), requiring any corporation transferring any share of stock 
pursuant to the exercise of an option described in subsec. (a)(2) to 
identify such stock, was struck out.
    Subsec. (d). Pub. L. 96-167 redesignated subsec. (d) as (c).
    1976--Subsecs. (a), (b). Pub. L. 94-455 struck out ``or his 
delegate'' after ``Secretary''.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-34 applicable with respect to options 
granted on or after Jan. 1, 1976, and exercised on or after Jan. 1, 
1981, or outstanding on Jan. 1, 1981, or granted on or after Jan. 1, 
1976, and outstanding Aug. 13, 1981, see section 251(c) of Pub. L. 97-
34, set out as an Effective Date note under section 422 of this title.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-167 applicable with respect to calendar 
years beginning after 1979, see section 7(c) of Pub. L. 96-167, set out 
as a note under section 6652 of this title.


                             Effective Date

    Section applicable to stock transferred pursuant to options 
exercised on or after Jan. 1, 1964, See section 221(e) of Pub. L. 88-
272, set out as an Effective Date of 1964 Amendment note under section 
421 of this title.


                            Savings Provision

    For provisions that nothing in amendment by Pub. L. 101-508 be 
construed to affect treatment of certain transactions occurring, 
property acquired, or items of income, loss, deduction, or credit taken 
into account prior to Nov. 5, 1990, for purposes of determining 
liability for tax for periods ending after Nov. 5, 1990, see section 
11821(b) of Pub. L. 101-508, set out as a note under section 29 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 424, 6724 of this title.