Formula 409A: Cleaning Fluid or Gunk in the Works?

It looks like Brad is about to take on another ugly topic with a deep dive series. Proposed IRS Regulation 409A has gotten a lot of venture capitalists, board members and entrepreneurs spinning the legal meter before January 1, 2006. It relates to calculating fair market value for granting stock options and here's a taste of how Brad and friends are thinking about it:

"IRS Regulation 409A really sucks. While I’m probably now on some audit watch list as a result of speaking my mind, there really isn’t any other way to state it. Jason Mendelson and I were bitching about this today as we pondered how to deal with it and decided that we might as well try to constructively air our thoughts (and help educate our entrepreneurial and venture brethern on some of the issues) via a 409A Series"

If you haven't checked out Feld Thoughts yet, you might want to. He doesn't have the Florida perspective, but on general venture topics he's one of my favorites...