Last week the Do J brought criminal charges against two Brocade Communications Systems executives, while the SEC filed a civil suit against the same two and the CFO.
As expected, the charges focused on backdating stock options by doctoring employment documents, neglecting to record the stock-option expense on the company’s books, and misleading investors.
My understanding is that if audited, the IRS will look to the date of the receipt you give the donor and that should correspond to the check date.
Obviously, you will want to make sure you don't abuse this by backdating receipts when it is clear that the donor is backdating the check.
In-the-money options are different from performance-based compensation in the eyes of the Internal Revenue Service and the Financial Accounting Standards Board.
The date of Receipt or deposit doesn't seem to matter from my understanding (again unless this is clearly a 2013 event for the donor and you have knowledge of it). Since these are donations received, aren't you required to send a statement to the donors?
If you record the donation as received in 2013, are you allowed to provide a donation statement to the donor for 2012?
However, he only realizes this in January and so wishes to backdate the document to December.
The event did not happen during the time period required for the benefit so an attempt is being made to pretend that it did.
There is no statute that explicitly outlaws backdating stock-option grants, but it seems virtually impossible to backdate options and achieve the ultimate goal of putting grants “in the money” without first deliberately falsifying documents and then covering up the sham.