-16- CTI’s Chief Financial Officer (“CFO”). In general, the Trading Window opens (i.e., trading is permissible) on the third business day after CTI releases information to the financial community about the prior quarter results, and closes (i.e., trading is prohibited) at the close of business on the fifteenth (15th) day of the last month of a fiscal quarter. If the fifteenth day of the month falls in a weekend, the window shall close on the last business day preceding the fifteenth day of the month. The trading window was closed when petitioner exercised her options on March 5, 2002. The trading window remained closed until the third business day after May 13, 2002. G. Petitioners’ 2002 Federal Income Tax Return Petitioner received from CTI a 2002 Form 1099 in the amount of $21,787.50. Petitioner also received from CTI a 2002 Form W-2, Wage and Tax Statement, that reported that petitioner had received $2,156,436.35 as wages, tips, or other compensation. The Form W-2 listed $582,066.18 as the amount of Federal income tax withheld. The wages reported by CTI on the Form W-2 included the spread between the strike prices and the fair market value of the stock received when petitioner exercised her stock options on March 5, 2002. On or about April 15, 2003, petitioners filed their 2002 Federal income tax return. They reported the following relevant information on that return: $29,404 in wages, salaries, tips etc.; business income of $19,324 ($21,788 in gross receipts less $2,464 in expenses consisting of travel ($2,335) and meals and entertainment ($129)); total adjusted gross income of $80,730;Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: November 10, 2007