Archive for the ‘Financial’ Category
Privacy Lawyer Aaron Messing Quoted in State Farm’s “Fast Tracks”
Tuesday, November 13th, 2012When should you provide your social security number? State Farm asked us when sharing is required.
State Farm contacted OlenderFeldman LLP‘s Aaron Messing to ask when sharing your social security number is appropriate:
Think before revealing your Social Security Number (SSN). Its unauthorized use could lead to privacy invasion and identify fraud. Aaron Messing, an information privacy attorney at OlenderFeldman LLP, says sharing is generally required by law only for:
- Records of financial transactions in which the IRS is interested (banking, stock market, investment, property, insurance or other financial transactions
- Employment records
- Driver’s license applications
- Government benefit applications (Medicade, student loans, etc.)
- Joining the armed forces
- Obtaining some professional or recreational licenses
You can see the Fast Tracks article here.
Tags: e-Commerce, Identity Theft, Information Privacy, Internal Revenue Service (IRS), Privacy, Privacy Lawyer, social security numbers, State Farm
Posted in Business, Corporate, Data Privacy & Information Security, Financial | No Comments »
IRS Proposed Regulations Address Substantial Risk of Forfeiture Under IRC Section 83
Monday, July 9th, 2012The Internal Revenue Code (IRC) Section 83 governs property transferred to an employee in connection with the performance of services. Currently, the section states that such transfers of property (typically restricted stock or stock options) are subject to federal income tax when the property is no longer subject to a substantial risk of forfeiture; however, new regulations will go into effect on January 1, 2013.
By Alice Cheng
On May 29, 2012, the Internal Revenue Service (IRS) issued proposed regulations (REG-141075-09) under Section 83 to refine and narrow the concept of the substantial risk of forfeiture. Whether a substantial risk of forfeiture exists is based on the facts and conditions of a property transfer arrangement. The proposed regulations will address the confusion over the appropriate elements of what constitutes a substantial risk of forfeiture.
The Internal Revenue Code (IRC) Section 83 governs property transferred to an employee in connection with the performance of services. Currently, the section states that such transfers of property (typically restricted stock or stock options) are subject to federal income tax when the property is no longer subject to a substantial risk of forfeiture.
The proposed regulations will make clarifications in the following three areas:
- Under current regulations, a substantial risk of forfeiture exists subject to the performance (or non-performance) of substantial services of the employee, or to the occurrence of a condition related to the purpose of the transfer. The proposed regulation clarifies that a substantial risk of forfeiture arises only through a future service condition or a condition relating to the purpose of the transfer.
- Two issues will be considered to determine whether a substantial risk of forfeiture exists—the likelihood that the forfeiture event will occur, and the likelihood that the forfeiture will be enforced.
- A transfer restriction (such as lock-up provisions, buyback provisions, and blackout periods) generally does not create a substantial risk of forfeiture for the purposes of the Section. However, there is an exception if the sale of property at profit could subject a person to suit under Section 16(b) of the Securities and Exchange Act of 1943.
The proposed regulations are to go into effect on January 1, 2013, and will apply to property transfers on or after that date.
Tags: Internal Revenue Code (IRC), Internal Revenue Service (IRS), Restricted Stock, Risk of Forfeiture, Stock Options
Posted in Business, Corporate, Financial, Technology | No Comments »