Stock Option Valuation (IRC 409A) and Expensing (ASC 718 | FAS 123R)
Scalar Partners is a leading provider of IRC 409A and FAS 123R valuation services to growing private companies.
If you are granting options, are you aware of Internal Revenue Code section 409A?
In 2004, the IRS issued new laws requiring private companies to grant stock options at “fair market value.” It is no longer an option for management and board members to pick a number out of the air. If you get the price wrong, it could result in back taxes for employees with a hefty 20% tax penalty applied to their income tax rate. The IRS provided a safe harbor provision in section 409A protecting companies that obtain a valuation appraisal from an independent, qualified valuation firm.
Scalar Partners is chosen as a valuation provider by leading growth equity companies because of our industry experience, technical expertise, and our price. We provide top quality valuations that meet the highest standards of quality but we do it at the very best price in the industry. We have performed hundreds of valuations for leading clients.
Need to expense your stock options?
Scalar Partners provides custom FAS 123R services to ensure that your stock option expense accounting is handled correctly.
Join scores of growing companies that have already selected Scalar as their preferred independent valuation provider.