Keith D. Hilen - Page 10

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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                
               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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