New IRS rules may diminish stock perks
Critics charge that the new rule would hurt employers’ ability to attract and retain workers with these popular plans, especially in the competitive high-tech industry. The IRS is claiming that the stock incentive programs are compensation, while critics claim they are actually benefits, with no income being gained until one sells the stock. A congressional tax committee estimates that the change would result in the IRS collecting an additional $23 billion over the next decade.
See "New IRS rules may diminish stock perks", Alorie Gilbert, CNET News.com, The New York Times, April 28, 2002