Ray J. Hope and Doris F. Hope v. United States

EDITH HOLLAN JONES, Circuit Judge:

This case involves the construction of the retroactivity provision [§ 251(c)(1) and (2) ] of the incentive stock option section of the Economic Recovery Tax Act of 1981 (“ERTA”), Pub.L. No. 97-34, § 251(c)(1) & (2) 95 Stat. 172, 257-58 (1981) [hereinafter referred to as ERTA]. Additionally, the modification rule contained in I.R.C. § 425(h) and Question and Answer 9 and 10 of Temporary Regulations relating to Incentive Stock Options, 26 C.F.R. § 14a.422A-l (1986) must be construed as they interrelate with the other provisions. The district court approved the…