The Taxation module provides a detailed exploration of the tax rules, reporting obligations, and compliance requirements governing key forms of equity compensation, including ISOs, NQSOs, RSUs, and ESPPs. Topics include:

• Incentive Stock Options (ISOs): Reviews the statutory requirements for ISOs, tax treatment of qualifying and disqualifying dispositions, AMT treatment, and reporting on Forms 3921.
• Nonqualified Stock Options (NQSOs): Explanation of income recognition at exercise and subsequent capital gains or losses upon sale, along with employer withholding and reporting obligations.
• Restricted Stock and RSUs: Clarifies the distinctions between restricted stock and RSUs, when and how income is recognized for each award, use of Section 83(b) elections, and employer tax withholding and reporting responsibilities.
• Employee Stock Purchase Plans (ESPPs): Compares Section 423 qualified and nonqualified ESPPs, examines the taxation of qualifying and disqualifying dispositions, and reviews compliance requirements such as IRS Form 3922 as well as the influence of plan design, holding periods, and discounts on tax outcomes.