Thanks for the response Peter!I understood the issue to be that the options were given at a discount to FMV on the day they were given (50%), and the IRS considers that deferred compensation, but they didn't report it as such.They are not paying the 20%. They will pay the interest on the 20%, and will pay up to $500 for amending our taxes. But what I'm seeing online leads to me to believe it is more their fault than mine, and they should pay it. Do you think if we pushed them they would pay it? My 06 W-2 doesn't have this on it. They will be sending a correct 06 W-2 later.a couple of clients... So are you a tax accountant, attorney, ?Thanks,Joe
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