Internal Revenue Code Section 422
Definitions
- (n.) A provision in the U.S. Internal Revenue Code that governs the tax treatment of incentive stock options (ISOs), specifying conditions for favorable tax treatment to employees.
Under Internal Revenue Code section 422, employees may receive incentive stock options with preferential tax benefits.
Forms
- internal revenue code section 422
Related terms
See also
Commentary
IRC §422 specifically outlines requirements for incentive stock options to qualify for preferential tax treatment, making it essential for drafting stock option agreements to ensure compliance with its criteria.
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