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.
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.
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.
