Senator Carl Levin of Michigan has discovered what he calls a “huge gap in stock option reporting” that is costing the government billions in lost revenue. Levin is teaming up with Senator John McCain to propose a bill that will prevent this from happening in the future. Check out the Associated Press story on this new development below.
A multibillion-dollar gap between what public companies book as expenses for their executives' stock options and what they report to the IRS under two sets of rules is costing the Treasury billions in lost revenue, a key senator says.
Companies continue to report deductions for stock options to the Internal Revenue Service that far exceed what they are accounting and disclosing to shareholders as hits against their bottom line, Sen. Carl Levin, D-Mich., said Wednesday. He released new IRS data showing that the total gap for corporations in 2008 was $52 billion.
