Query on stock as compensation

Jun 21, 2008 1 Replies

A startup had engaged an independent contractor on an assignment which ran for a few months. The compensation was a mix of cash and shares as stock grants (valued at a mutually agreed amount, substantially higher than the par value). The contractor has still not taken the shares.



The query : When does the company issue a 1099-MISC to the contractor ... only when the shares are issued?


I would say (using "constructive receipt") that it should be when the right to receive the shares vests.

Seth

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