- 5 -
The fair market value of Exodus Communications, Inc.
common stock, at the date that certain stock options
were exercised (December 21, 2000) was $23.25 per share
instead of the amount used to compute the
adjustments/preferences on [F]orm 6251 of the income
tax return. Therefore, the amount of the
adjustment/preference is $1,057,415.00 instead of the
$452,025.00 reported on the return. * * *
On December 4, 2003, prior to filing a petition for
redetermination of the notice of deficiency, petitioner filed a
Form 1040X, Amended U.S. Individual Income Tax Return for 2000,
reducing his alternative taxable income for AMT purposes by
$452,025, the excess of the price for Exodus common stock
reported on NASDAQ on April 15, 2001, over the price he paid for
the stock, thereby eliminating the $116,973 of AMT reported on
his 2000 Federal income tax return and claiming a tax refund of
$149,757. Under Part II, Explanation of Changes to Income,
Deductions, and Credits, of the 2000 amended Federal income tax
return, petitioner stated: “Return adjusted to reflect shares
subject to substantial risk of forfeiture and non-transferable.”
Petitioner filed a petition for redetermination of the
notice of deficiency for the year 2000 with the Court on December
18, 2003.
On December 27, 2004, respondent filed a motion for partial
summary judgment on the issue of whether petitioner’s rights to
shares of stock of Exodus he acquired during 2000 as a result of
exercising an ISO were subject to a substantial risk of
forfeiture.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011