IRS Issues Final Incentive Stock Option Plan Rules

The IRS has issued final regulations on incentive stock option plans. The proposed regulations were published last year. The new rules only make minor changes from the proposed regulations, including revisions to the maximum aggregate number of shares in an ISO plan, the substitution and assumption of ISOs in mergers and acquisitions, and the modification of awards. The text of the regulations can be found at here on the IRS's Web site.