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This is particularly true in cases of backdating which involve indicating dates during which stock prices were lower and declaring that the options were issued at the money (which means that the strike price is about the same as that of the underlying stock) as opposed to in the money (which means that the underlying stock price is lower than the strike price).

The use of options backdating may provide executives with higher income without the knowledge of shareholders, or could violate the option plan of the company.

Drafting and executing a document after an event occurs, but in a manner that accurately reflects the date on which the event transpired, is a permissible form of backdating.

This is backdating that memorializes, something the United States Court of Appeals for the Seventh Circuit has recognized as a legitimate practice.

The information below was written by the Low Incomes Tax Reform Group.

Standard backdating An initial claim can be backdated if the circumstances entitling the person to tax credits have subsisted for the period of the backdating.

The intention was that each of these entities would be “divisions” of the original S-corp which would be the “holding company” for them all, which would have made it possible for just one tax return to be filed under the tax ID of the holding company.I have recently gone to work for a small business in which many entity changes were effected by a previous outside tax planner as of the end of 2011 and throughout 2012. During year 2012, four additional LLCs were created to conduct different lines of business for the same married owners.The original company, an S-corp, was split into two separate LLC entities, one for each of the two locations which sell identical products and services. The two locations and the other new entities were separated in order to protect the owners’ assets from potential lawsuits should there be any.Backdating more than 31 days/1 month There are two situations in which it is possible to get backdating of more than 31days/1 month: Refugee status If a person has claimed asylum as a refugee and is then awarded refugee status, providing they apply for tax credits within one month of receiving notification of that refugee status, they will be treated as if they made their tax credits claim from the original date they claimed asylum.Prior to 6 April 2012, refugees had 3 months from being awarded refugee status to inform HMRC and receive longer backdating.




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