Form 3921 & Form 3922 Reporting

Background of IRC 6039

Beginning in 2010, the IRS adopted regulations under Section 6039 of the Internal Revenue Code requiring companies to provide participants with Form 3921 for all Incentive Stock Option (ISO) exercises and Form 3922 upon first transfer of legal title of shares acquired pursuant to an Employee Stock Purchase Plan (ESPP). Forms must be mailed by January 31st of each year and electronically filed with the IRS by March 31st.

The SPS/GZ Difference!

SPS/GZ provides true full-service IRC 6039 tax form reporting solutions to clients. Our solution includes a diagnostic review process, whereby information on Form 3921 and Form 3922 are compared against SEC filings and other data sources for consistency and accuracy. Every year our processes help our clients from filing incorrect information.

Benefits of 6039 Reporting by SPS/GZ

We are the only IRC 6039 reporting solution that includes an interactive corrections portal for clients, whereby clients can make online corrections to forms after they have been mailed and/or filed. All edits are tracked automatically in the system, and amendments are filed with the IRS without any further action required by the client. All IRC 6039 reporting forms and source files are accessible 24/7 in an archived database for 7 years, reducing clutter for clients and freeing up storage space. This also allows clients to easily amend forms from prior years and provides an instant audit trail. SPS/GZ is proud to provide tax reporting services to hundreds of clients throughout the U.S.
  • Comprehensive review process by CEPs and CPAs
  • Can work with exports with all stock plan platforms
  • Creation of Form 3921 and Form 3922
  • Proprietary Q&A memo insert included
  • Complimentary TIN-Matching services
  • Identification of potential errors, reducing exposure for penalties
  • Three-pronged quality control process before mailing to ensure data security
  • Printing and mailing of forms via First Class Mail
  • All proprietary features of the spsgzXchange™ portal
Contact us to learn how SPS/GZ can be your company’s trusted partner for stock plan administration and tax form reporting services. We look forward to helping your company ease the burden of Form 3921 and Form 3922 reporting, as well as daily stock plan administration tasks.

Demystifying Form 3921 and Form 3922

IRS forms 3921 and 3922 both pertain to employee stock option plans, but they serve distinct purposes. Form 3921 is utilized when a business grants incentive stock options (ISOs) to employees. This form reports the exercise of ISOs and provides details such as the exercise price, exercise date, and fair market value of the stock on the exercise date. On the other hand, Form 3922 is employed when a business grants stock purchase rights (ESPP) to employees under an employee stock purchase plan. It reports the transfer of legal title of the stock to the employee, typically after the purchase period has ended. For example, a company might need to file Form 3921 when an employee exercises their ISOs, indicating the taxable event of exercising the options. Conversely, if an employee purchases company stock through an ESPP, the company would file Form 3922 to report the transfer of ownership of the purchased shares to the employee. In essence, Form 3921 deals with stock options exercised, while Form 3922 deals with stock purchased through an employee stock purchase plan.

Organizations & Accolades

  • Link to aicpa.org
  • Link to healthcarereformcenter.org
  • Link to wellnessassociation.com
  • Link to icpas.org
  • Link to naspp.com
  • Link to nceo.org
  • Link to scu.edu

Contact us to learn how SPS/GZ can be your company’s trusted partner for stock plan administration and tax form reporting services.