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Subject Author Date
Query on stock as compensation anandanath 06-21-2008
Posted by anandanath on June 21, 2008, 9:33 am
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 A startup had engaged an independent contractor on an assignment which
ran for a few months. The compensation was a mix of cash and shares
as stock grants (valued at a mutually agreed amount, substantially
higher than the par value). The contractor has still not taken the
shares.

The query : When does the company issue a 1099-MISC to the
contractor ... only when the shares are issued?

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Posted by Seth on June 24, 2008, 1:24 pm
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>A startup had engaged an independent contractor on an assignment which
>ran for a few months. The compensation was a mix of cash and shares
>as stock grants (valued at a mutually agreed amount, substantially
>higher than the par value). The contractor has still not taken the
>shares.
>
>The query : When does the company issue a 1099-MISC to the
>contractor ... only when the shares are issued?

I would say (using "constructive receipt") that it should be when the
right to receive the shares vests.

Seth

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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