Under Section 6039 of the Internal Revenue Code, corporations are required to furnish statements to current and former employees who exercised an incentive stock option in 2013 or first transferred legal title to shares acquired as part of the corporation’s 423 employee stock purchase plan in 2012. These statements must be furnished on Forms 3921 and 3922 no later than January 31, 2014.
Corporations must all also file returns with the IRS on Forms 3921 and 3922 no later than February 28, 2014.
Form 3921 is for ISO exercises and provides the following information:
Form 3922 is for the transfer of employee stock purchase plan shares and provides the following information:
Penalties will result if Forms 3921/3922 are not furnished to the affected employees (current or former) and Internal Revenue Service on a timely basis.
If you should have any questions, please contact Mark Flanagan of Aronson’s Specialty Tax Group at 301.231.6257.
About the Author: Mark Flanagan is a director in Aronson’s Specialty Tax Group. He has over 20 years of experience in the compliance and technical aspects of qualified and non-qualified benefit plans, including plan design, consulting, and technical administration.