Source: http://taxtv.com/code/00368-USCODE-2011-title26-subtitleA-chap1-subchapD-partII-sec424/
Timestamp: 2017-10-22 04:38:49
Document Index: 478623183

Matched Legal Cases: ['§424', '§424', '§424', '§221', '§425', '§2', '§102', '§555', '§1018', '§7811', '§424', '§11801', '§1702', '§11801', '§11801', '§11801', '§11801', '§11801', '§11801', '§1018', '§102', '§2', '§2', '§2', '§1855']

IRC §424. Definitions and special rules - TaxTV.com
IRC §424. Definitions and special rules
View related content: IRC §424
For purposes of this part, the term “issuing or assuming a stock option in a transaction to which section 424(a) applies” means a substitution of a new option for the old option, or an assumption of the old option, by an employer corporation, or a parent or subsidiary of such corporation, by reason of a corporate merger, consolidation, acquisition of property or stock, separation, reorganization, or liquidation, if—
Except as provided in paragraphs (2), (3), and (4), for purposes of this part, the term “disposition” includes a sale, exchange, gift, or a transfer of legal title, but does not include—
In applying subsections (e) and (f) for purposes of section 1 422(a)(2) and 423(a)(2), there shall be substituted for the term “employer corporation” wherever it appears in subsection (e) and (f) the term “grantor corporation” or the term “corporation issuing or assuming a stock option in a transaction to which section 424(a) applies” as the case may be.
The term “modification” means any change in the terms of the option which gives the employee additional benefits under the option, but such term shall not include a change in the terms of the option—
(Added Pub. L. 88–272, title II, §221(a), Feb. 26, 1964, 78 Stat. 71, §425; amended Pub. L. 97–34, title II, §2 (b)(2)–(4), Aug. 13, 1981, 95 Stat. 259; Pub. L. 97–448, title I, §102(j)(5), (6), Jan. 12, 1983, 96 Stat. 2373; Pub. L. 98–369, div. A, title V, §555(b), July 18, 1984, 98 Stat. 898; Pub. L. 100–647, title I, §1018(l)(1), (2), Nov. 10, 1988, 102 Stat. 3584; Pub. L. 101–239, title VII, §7811(m)(6), Dec. 19, 1989, 103 Stat. 2412; renumbered §424 and amended Pub. L. 101–508, title XI, §11801(c)(9)(A)(i), (F), Nov. 5, 1990, 104 Stat. 1388–524, 1388–525; Pub. L. 104–188, title I, §1702(h)(13), Aug. 20, 1996, 110 Stat. 1874.)
Subsec. (a). Pub. L. 101–508, §11801(c)(9)(F)(i), substituted “424(a)” for “425(a)”.
Subsec. (c)(3)(A)(ii). Pub. L. 101–508, §11801(c)(9)(F)(ii), substituted “422(a)(1) or 423(a)(1)” for “422(a)(1), 422A(a)(1), 423(a)(1), or 424(a)(1)”.
Subsec. (d). Pub. L. 101–508, §11801(c)(9)(F)(iii), substituted “422(b)(6) and 423(b)(3)” for “422(b)(7), 422A(b)(6), 423(b)(3), and 424(b)(3)”.
Subsec. (g). Pub. L. 101–508, §11801(c)(9)(F)(iv), substituted “422(a)(2) and 423(a)(2)” for “422(a)(2), 422A(a)(2), 423(a)(2), and 424(a)(2)” and “424(a)” for “425(a)”.
Subsec. (h)(3). Pub. L. 101–508, §11801(c)(9)(F)(v)(III), struck out at end “If a restricted stock option is exercisable after the expiration of 10 years from the date such option is granted, subparagraph (B) shall not apply unless the terms of the option are also changed to make it not exercisable after the expiration of such period.”
Subsec. (h)(3)(B). Pub. L. 101–508, §11801(c)(9)(F)(v)(II), substituted “section 423(b)(9)” for “sections 422(b)(6), 423(b)(9), and 424(b)(2)”.
1988—Subsec. (c)(1). Pub. L. 100–647, §1018(l)(2), as amended by Pub. L. 101–239, substituted “paragraphs (2), (3), and (4)” for “paragraphs (2) and (3)”.
1983—Subsec. (c)(1). Pub. L. 97–448, §102(j)(6)(B), substituted “paragraphs (2) and (3)” for “paragraph (2)”.
1981—Subsec. (d). Pub. L. 97–34, §2 (b)(2), inserted reference to section 422A(b)(6).
Subsec. (g). Pub. L. 97–34, §2 (b)(3), inserted reference to section 422A(a)(2).
Subsec. (h)(3)(B). Pub. L. 97–34, §2 (b)(4), inserted reference to section 422A(b)(5).
Section 555(c)(3) of Pub. L. 98–369, as amended by Pub. L. 99– 4, title XVIII, §1855(a)(4), Oct. 22, 1986, 100 Stat. 2882, provided that: “The amendment made by subsection (b) [amending this section] shall apply with respect to modifications of options after March 20, 1984.”
Section 102(j)(6) of Pub. L. 97–448 provided that the amendment made by that section is effective only with respect to transfers after March 15, 1982.