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petitioner’s liability to repay Comerica. In fact, Comerica
filed suit to collect on its note, forcing petitioner into
chapter 7 bankruptcy.
Therefore, the shares of InsWeb common stock were
“transferred” to petitioner, within the meaning of section 1.83-
3(a), Income Tax Regs., when petitioner exercised his
nonstatutory stock options.
Petitioner next alleges the proper date of transfer for
determination of tax is January 18, 2000, instead of September 7
and December 30, 1999. Petitioner argues his rights to the
shares of InsWeb common stock he acquired through exercising his
nonstatutory stock options were nontransferable and subject to a
substantial risk of forfeiture under section 1.83-3(c), Income
Tax Regs., because of the restrictive legend on the stock
certificates. In his brief, petitioner relies on Robinson v.
Commissioner, 805 F.2d 38 (1st Cir. 1986), revg. 82 T.C. 444
(1984).
In Robinson v. Commissioner, supra at 40-41, the Court of
Appeals for the First Circuit held that a taxpayer’s shares of
stock were subject to a substantial risk of forfeiture until a
1-year sellback provision lapsed. The employer in Robinson could
have compelled its employee to sell the shares of stock back to
it at the price the employee paid at the time he exercised his
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