Beginning with transactions conducted during the 2010 calendar year, amendments to Code Sec. 6039 by the Tax Relief and Health Care Act of 2006 now require corporations to file information returns reporting transfers of stock to employees made in connection with the exercise of an incentive stock option or employee stock option purchase plan. Generally, corporate employers must file information returns with the IRS regarding transfers of stock to employees in the calendar year if the transfer is made in connection with the exercise of an incentive stock option or made under an employee stock purchase plan where the option price is between 85 and 100 percent of the value of the stock. This reporting will occur on either Form 3921, Exercise of an Incentive Stock Option Under Section 422(b), or Form 3922, Transfer of Stock Acquired Through An Employee Stock Purchase Plan Under Section 423(c).
HLB Gross Collins
Varied