Magnum P.I. – Getting to the Bottom of IRS and SEC Risks in Equity Compensation

Slides from presentation given at the 10th Annual CEP Symposium, Santa Clara, CA.

Panelists: Nathan O’Connor, Equity Methods Jason French, Ernst & Young Deborah Spyker, Ernst & Young LLP

In this session, we will take a detailed look at the potential civil and criminal penalties and interests that can apply to equity compensation with detailed quantitative examples that provide illustrations of how the penalties and interest are actually calculated by the IRS. We will look not only at the various penalty and interest provisions but also potential mitigation opportunities to reduce the penalties and interest that may apply where a violation has occurred. The focus will be not only on the income tax implications but also employment tax implications as there can be differences, particularly relative to mitigation. Additionally, this session will discuss the dimensions of risk involved in financial reporting and areas of particular focus by auditors and regulatory bodies.