Keith D. Hilen - Page 4

                                        - 4 -                                         
               On December 30, 1999, petitioner also exercised another of             
          his nonstatutory stock options, option No. 17, to purchase 23,625           
          shares of InsWeb common stock.  The fair market value of the                
          stock petitioner received was $599,484.  The exercise price                 
          petitioner paid to InsWeb was $11,813.                                      
               Petitioner paid InsWeb for the shares of common stock with             
          checks from his Comerica checking account.                                  
               The stock certificates petitioner received included a                  
          restrictive legend that stated the shares could not be                      
          transferred, sold, or otherwise disposed of before January 18,              
          2000.  Despite this, petitioner had the right to receive                    
          dividends and exercise his voting rights with respect to the                
               On October 21, 2000, petitioner filed a Form 1040, U.S.                
          Individual Income Tax Return, for 1999.  Petitioner reported                
          wages of $1,448,531.  Attached to petitioner’s income tax return            
          was a Form W-2, Wage and Tax Statement, from InsWeb reporting               
          wages of $1,435,031, which included the spread between the                  
          exercise prices and the fair market values of the stock he                  
          received when he exercised his nonstatutory stock options on                
          September 7, 1999, and December 30, 1999.                                   
               Petitioner defaulted on his Comerica loan, and Comerica                
          issued a notice of private sale of collateral dated December 21,            

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011