IRC 409a - stock based compensation

IRC 409a - Stock Based Compensation

If you plan on granting stock options or restricted shares to your employees, you will need to ensure you are compliant with IRS Code 409a. As with anything involving taxes, this process can be painful at best. However, you are legally obligated to comply and not doing so could cause potentially massive tax liability. Our goal is to make this cheap, quick, and painless. Our team has completed over 100 valuations across all technology and life science sectors. Our methods and final product have been tested and approved by auditors, including Big Four and leading regional firms.

The IRS has created a compliance initiative project (CIP) for IRC Section 409A. As part of the CIP, the IRS will review the deferred compensation plans of selected employers to evaluate their compliance with Section 409A requirements. This foreshadows a much broader Section 409A enforcement initiative. Obtaining a defensible appraisal is an important step in potentially saving you and your employees from unnecessary IRS challenges and penalties.

Alps Venture Partners has established a team of experts that have experience in valuing businesses across diverse industry sectors and all developmental stages; ranging from Clients with seed funding to pre-IPO stage. With the team having experience of both valuations and audits, our detailed and insightful Section 409A appraisal reports, along with our responsive support, help our Clients easily pass through any stringent audit review process in a smooth, efficient and time-bound manner.