Yup, exactly, it was indeed 409a penalties and options/deferred income. Also right, if it's straight-up realtime income, and you declare the full arms-length e

Yup, exactly, it was indeed 409a penalties and options/deferred income. Also right, if it's straight-up realtime income, and you declare the full arms-length exchange / full & fair market value (minus whatever you paid or have as basis), and pay tax on that, you're probably ok (but IANAL, this is not legal advice).