IRS Claims Greater Rights Than Stock Option Holders – OK To Garnish And Levy On Nontransferrable Options - 13 July 2009

United States: IRS Claims Greater Rights Than Stock Option Holders – OK To Garnish And Levy On Nontransferrable Options Article by J. Leigh Griffith and James B. Bristol

In an Internal Legal Memorandum (ILM), the IRS has taken the
position that it can seize and sell stock options held by a
taxpayer, even though the taxpayer was restricted from transferring
or selling the options. Dated Jan. 9, 2009, ILM 200926001 was only
recently made public. An ILM is a memorandum prepared by the legal
counsel staff in the IRS national office that does not have the
force of law. It indicates, however, the current enforcement
position of the IRS.

Transfer restrictions are common in compensatory option
programs..

http://www.mondaq.com%2Farticle.asp%3Farticleid%3D82864&urlhash=s4NZ&trk=NUS_RITM_title&goback=.hom

(I would like to thank Pam Chernoff for pointing out this artcle.)