Treasury Indicates Willingness to Change Tax Withholding Rules on Options and ESPPs

Pamela Olson, acting assistant Treasury secretary for tax policy, said that the Administration would be willing to consider delaying proposed IRS regulations that would impose payroll tax withholding on incentive stock options and employee stock purchase plans if they are too burdensome. It also would not oppose legislation to change the rules. The House has passed legislation preventing the implementation of the new withholding requirements; the Senate has yet to consider the proposal.