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You're also not allowed to put ISOs or anything "earned" into a Roth IRA (or buy it from yourself). The problem here is that this was clearly a prohibited tran
by nrmitchi 5y ago
You're also not allowed to put ISOs or anything "earned" into a Roth IRA (or buy it from yourself).
The problem here is that this was clearly a prohibited transaction, but the IRS state of limitations is effectively 3 years for stuff like this (unless you have really pissed someone off). It's likely that by the time the stock was worth enough (in terms of 409A guesstimate) to look in to, or there was any kind of reportable transaction showing a gain, the time frame on investigating the initial transaction was long past.
- TAForObvReasons 5y ago> IRS records show that in 1999 Thiel purchased 1.7 million shares of his startup, which would soon become PayPal, for just $1,700 — a tenth of a penny per share > Even though Thiel's startup received millions in funding within months, Pensco still told the IRS these founders' shares were worth less than $1,700 at the end of 1999. Under certain circumstances, there is no statute of limitations. If Pensco did knowingly misrepresent the value of the shares, and if the funding round did imply a wildly different valuation, IRS could still pursue the case.
- lotsofpulp 5y ago> The problem here is that this was clearly a prohibited transaction I have been unable to find any source for this claim. Even ProPublica, the people with the original documents and the most incentivized to break the news, do not claim this.
- nrmitchi 5y agoProPublica making a public claim of a tax crime is much more likely to be considered libel than an insignificant person on HN doing the same.
- lotsofpulp 5y agoSo people claiming that he committed fraud are just making up stuff.
- nrmitchi 5y agoOR they read the basic rules, regulations, and restrictions about contributing to a Roth IRA and came to a logical conclusion.