New Deadline for Stock Reporting Rules January 31

1/20/2011

by Mark Corey, CPA

In 2010, the Internal Revenue Service issued final regulations requiring every corporation “which in any calendar year transfers to any employee a share of stock pursuant to that employee's exercise of an incentive stock option described in section 422(b) must, for that calendar year, file Form 3921 for each transfer made during that year.” The regulation goes on to say, "...every corporation, which in any calendar year records, or has by its agent recorded, a transfer of the legal title of a share of stock acquired by the employee pursuant to the employee's exercise of an option granted under an employee stock purchase plan and described in section 423(c) must, for that calendar year, file Form 3922 for each transfer made during that year.”

The new regulations apply for transfers that occurred in 2010 and later calendar years, meaning that the first report will be due by January 31, 2011. New forms 3921 and 3922 are available on the IRS website along with the instructions for preparation of these forms.