New IRS Forms for Reporting Exercise of Stock Options
15 Nov New IRS Forms for Reporting Exercise of Stock Options
The IRS has issued two new forms for reporting stock options. Form 3921, Exercise of an Incentive Stock Option Under Section 422(b), and Form 3922, Transfer of Stock Acquired Through An Employee Stock Purchase Plan Under Section 423(c), reflect the information reporting required by the 2006 Tax Relief and Health Care Act (TRHCA). Under these provisions, employers are required to file an information return with IRS in addition to providing information to the employee about the transfer of stock pursuant to the exercise of an incentive stock option (ISO) and certain stock transfers regarding employee stock purchase plans (ESPPs). These provisions, which had most recently been postponed by 2009 final regulations, are now effective for stock transfers in 2010.