+2  A: 

For elements which are naturally inline, IE requires that the element have the display: inline-block; css property before it will apply properties like padding. So just add display: inline-block to your anchor element.

<a style="display: inline-block; padding: 20px; background: red;" href="#">Some link</a>
Ken Browning
Wow. I'm not a Microsoft hater but this was a tough nut damn IE! Thank you!
Alex