ABATax Comment Concerning IRS Notice 2001-10

Section of Taxation
Submission to the Federal Executive Branch

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Comments Concerning IRS Notice 2001–10
April 2001

I.  Characterizing Equity SDAs

  1. Transition Issues
     
    1. Election Procedures

      Guidance should be provided as to how parties should elect tax treatment under the Notice. Is a formal amendment to the Equity SDA required, or is merely reporting taxable income on a consistent basis required? What happens if the parties do not agree on the method to be used for determining tax results? Is it appropriate for Section 83 to be the default tax treatment if the employer and the employee report the transaction inconsistently?

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