### Question
How does Income Taxes define modification?


### Answer
Under *26 U.S.C. § 424*, **modification** is defined as:

> any change in the terms of the option which gives the employee additional benefits under the option, but such term shall not include a change in the terms of the option—


(A) attributable to the issuance or assumption of an option under subsection (a)

#### Citation:
  - *26 U.S.C. § 424*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART II-CERTAIN STOCK OPTIONS**

