Form 3922

Form 3922

A form a corporation files with the IRS upon an employee's exercise of a stock option at a price less than 100% of the stock's market price. Form 3922 is used when the employee eventually sells the stock in order to calculate the capital gain or loss.
References in periodicals archive ?
Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c) (this form was in development at the time of this writing); and
8220;We came to SOS in need of immediate help with the processing of Form 3922 and the filing with the IRS.
Form 3922 is used to report transfer of stock acquired through an employee stock purchase plan under section 423(c).
For ESPPs, the final regulations indicate that Form 3922 will require the following information:
At the time it issued the final regulations, the IRS indicated that it was in the process of developing two new forms that taxpayers will use to fulfill the reporting requirements: 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).
The best way to prevent costly errors and IRS penalties is to ensure that your Form 3922 policies conform to the best practices.