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IRS Delays Payroll Tax Rules on ESPPs, ISOs; House Votes to Make DC Limits Permanent
National Center for Employee Ownership [NCEO] 
June 25, 2002
In a major development in the stock plan field, the IRS has indefinitely delayed implementation of its highly controversial proposal to impose payroll taxes on incentive stock options and Section 423 employee stock purchase plans. In other news, the House of Representatives voted to make permanent the higher limits on defined contribution plans (such as ESOPs and 401(k) plans) enacted in the 2001 tax bill.
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