To prevent this problem you exercise your options and sell stock at the same time.
Lets say you have 10,000 options with a strike price of $1 and the stock is trading at $11.
Instead of sending a check for $10,000 to the broker and receiving the stock, you tell them to sell 3,000 options for $33,000, have them keep $10,000 to pay for the options and send $23,000 to the IRS.
Lets say you have 10,000 options with a strike price of $1 and the stock is trading at $11.
Instead of sending a check for $10,000 to the broker and receiving the stock, you tell them to sell 3,000 options for $33,000, have them keep $10,000 to pay for the options and send $23,000 to the IRS.