Norman v. United States

MEMORANDUM *

Paul Norman seeks an income tax refund of $11,023 that he claims he overpaid for tax year 2001. On cross-motions for summary judgment, the district court ruled in favor of the United States. We affirm.

In February 2000, Norman acquired 85,-398 shares of stock by exercising incentive stock options (“ISOs”) granted to him by his employer, Network Appliance, Inc. Although Norman’s ISO discount exceeded $4.5 million, by holding the shares rather than cashing in he avoided realizing any income on the transaction for regular tax purposes in 2000. See I.R.C. § 421(a)(1). For purposes of…