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Taxes and Incentive Stock Options (CRS Report for Congress)

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Release Date Jan. 30, 2003
Report Number RS20874
Report Type Report
Authors Jane G. Gravelle, Government and Finance Division
Source Agency Congressional Research Service
Summary:

Cases of individuals who have incurred large tax liabilities from the exercise of stock options and who, because of falling stock prices, had no earnings have caused some concern. This effect arises from the impact of the alternative minimum tax. There are a variety of potential legislative remedies that could be considered to rectify this problem.