409(A) Valuations

IRC section 409(A) regulates the taxation of stock options and other forms of nonqualified deferred compensation. Under IRC section 409(A), if a company issues stock options to employees at a strike price below fair market value, both the company and the employees can face severe penalties from the IRS.

Allied Business Group performs 409(A) valuations to help start-ups and other privately owned companies set an appropriate strike price for their stock options. Our valuation reports are highly accurate and thoroughly detailed, which helps ensure that your equity compensation arrangements comply with IRS regulations. We also provide 409(A) valuation updates on an annual basis or whenever significant changes occur within your company.