Excerpt: As stated in the notice that sets forth the new rule, which was published in the Federal Register on July 29, the IRS's objective in issuing the proposed regulations was to provide a comprehensive set of rules governing section 423 options. Toward that end, the proposed regulations amend the existing section 423 regulations in three main respects. They update the regulations for statutory changes and conform them, where appropriate, to the section 422 regulations governing ISOs. They also clarify the requirements for employee stock purchase plans, and they remove obsolete rules.  MORE >>