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.
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Similarly, every corporation that in 2017 records (or has recorded by its transfer agent) the first transfer by an employee or former employee of stock acquired by such employee under an employee stock purchase plan (meaning a plan that is established under Section 423 of the Code, if the purchase price is either less than one hundred percent of the value of the stock on the grant date or is not fixed or determinable on the grant date) must, on or before January 31, 2018, furnish to the employee (or former employee) transferring the stock a written statement containing the information contained on Form 3922.
Form 3921 with respect to incentive stock option exercises or Form 3922 with respect to transfers of stock purchased under an employee stock purchase plan), or contained on a "substitute form" that meets the format and content requirements contained in Publication 1179.
8220;We came to SOS in need of immediate help with the processing of Form 3922 and the filing with the IRS.
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
Regulations under section 6039 require companies to file for each optionee and ESPP participant, to the extent applicable:An information return with the IRS on Form 3921 to report information relating to ISOs that were exercised in the prior year, and An information return with the IRS on Form 3922 to report shares purchased at a discount under an ESPP that were transferred to a third party in the prior year, including a transfer to a brokerage account or financial institution, which typically occurs immediately after the purchase of shares under an ESPP.
The IRS issued final rules for reporting requirements particularly with respect to Form 3922, which companies may find confusing and difficult to follow.
The best way to prevent costly errors and IRS penalties is to ensure that your Form 3922 policies conform to the best practices.
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).
For ESPPs, the final regulations indicate that Form 3922 will require the following information:
Form 3922 is used to report transfer of stock acquired through an employee stock purchase plan under section 423(c).