Groom Comments Recommend That IRS Not Impose Additional Information Reporting In Employer Stock-Based Compensation Programs

Liz Dold and Lou Mazawey of Groom recently urged the IRS not to impose any additional tax reporting requirements on stock-based employee benefit plans commonly offered by public companies. Recent changes in the law provide for increased reporting to IRS of the tax basis of stock by brokers and others.  In response to a request for public comment (IRS Notice 2009-17), Groom emphasized that present law and practice already provide ample tax basis reporting and other information to employees and the IRS so there is no need to use the new provisions to impose costly new requirements on such programs.