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Tax Lawyer, Vol. 53, No. 3 CAPITAL GAIN V. ORDINARY INCOME 703 703 CAPITAL GAIN V. ORDINARY INCOME AND THE FICA TAX TREATMENT OF EMPLOYEE STOCK PURCHASE PLANS Kevin Wiggins* I. INTRODUCTION On July 2, 1999, the Service dropped a bombshell on sponsors of employee stock purchase plans (“ESPPs”) with the issuance of Field Service Advice 1999-26034 (“FSA”).1 The FSA dramatically changes how amounts received under an ESPP should be treated for purposes of the Federal Insurance Contributions Act (“FICA...