Generally it goes by when they receive the check, not when they cash the check.
If the stock dropped below /share, the stock would be "under water"; therefore, the option would not be exercised, since the stock price is lower than the cost of exercising the option.
Unlike the abusive corporate tax shelter ploys which often involve complex manipulation of a transaction to achieve tax results that are inconsistent with the economic reality of the deal, stock option backdating is a relatively crude device: A corporation merely changes the date that a stock option was actually granted to an earlier time when the stock price was lower.
If your business changes or ceases, you should cancel your registration.
Stock option backdating has erupted into a major corporate scandal, involving potentially hundreds of publicly-held companies, and may even ensnare Apple's icon, Steve Jobs.
While the focus of the Securities and Exchange Commission ("SEC") centers on improper accounting practices and disclosures, thereby violating securities laws, a major yet little explored consequence to the scandal involves potentially onerous taxes on those who received these options.
Basically, a stock option is a contract right to purchase an amount of stock at a set price for a period of time.
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.
Before registering, you should check you're eligible to claim fuel tax credits.
Work out if you're eligible to claim fuel tax credits If you are already registered for GST, you can add a registration for fuel tax credits any time without affecting your GST tax period – whether it is monthly, quarterly, or annual.
Thousands of contractors and freelancers have become ensnared in a £5.5bn tax grab – aimed initially at wealthy tax dodgers – that allows HM Revenue & Customs to demand backdated taxes to be paid, in full, within a three-month deadline.