Account Ability prepares form 1098, 1099, 3921, 3922 Account Ability prepares form W-2, W-2C Account Ability prepares form W-2G, 5498, 5498-ESA, 5498-SA
Electronic reporting (efile) IRS TIN matching Print and Mail Services
Follow Account Ability on Facebook Follow Account Ability on Twitter Follow Account Ability on YouTube Follow Account Ability on Pinterest Initiate a desktop support session
Print and mail service Electronic reporting outsourcing service IRS bulk taxpayer identification (tin) matching service
Laser forms and envelopes Continuous forms and envelopes Income tax presentation folders and envelopes
Account Ability prepares 1099 and W-2 forms quickly and easily
About
Home
Features
E-File
TIN Matching
Print and Mail
Screen Shots
Order
Tax Forms
Presentation
Labor Law
Download
Support
Supplies
FAQs
Tips
Testimonials
Resellers/Links
Press Releases
Resources
Contact
IRS Sec 6039 Form 3921, 3922 Compliance

As amended by Section 403 of the Tax Relief and Health Care Act of 2006, section 6039 requires corporations to file an information return with the IRS, in addition to providing employees with an information statement, following a stock transfer. Returns required by §1.6039-1(a) of these final regulations and information statements required by §1.6039-2(a) of these final regulations must be made using Form 3921, Exercise of an Incentive Stock Option Under Section 422(b). Returns required by §1.6039-1(b) of these final regulations and information statements required by §1.6039-2(b) of these final regulations must be made using Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c).

Account Ability (try it now) includes electronic filing and plain paper filing for the entire family of information returns, annual wage reports, aggregate forms 3921, 3922, traditional forms 3921, 3922, and pressure seal forms 3921, 3922. Account Ability's free Import Mapping Utility facilitates the job of importing data from spreadsheets, delimited text files and data extractions from Equity Edge® by E*TRADE Corporate Services (read these simple instructions).

Account Ability welcomes all E*TRADE Corporate Services clients. We also offer complete outsourcing solutions for printing, mailing, electronic filing and correction processing of forms 3921 and 3922.

Form 3921 - Exercise of an Incentive Stock Option (ISO) Under Section 422(b)
For each transfer made during the previous year, the employer must provide to the IRS on Form 3921 the following:

  • Name, address and EIN of the company transferring the stock
  • The name, address and EIN of the company whose stock is being transferred
  • Name, address and social security number of the recipient of the stock transfer
  • Date of option grant
  • Exercise price per share
  • Date of option exercise
  • Fair market value per share on the date of exercise
  • Number of shares transferred.

Form 3922 - Transfer of Stock Acquired Through an Employee Stock Purchase Plan (ESPP) Under Section 423(c)
For each transfer made during the previous year, the employer must provide to the IRS on Form 3922 the following:

  • Name, address and social security number of the recipient
  • Name, address and EIN of the company whose stock is being transferred
  • Date of option grant
  • Fair market value per share on the grant date
  • Exercise price per share
  • Date of option exercise
  • Fair market value per share on the date of exercise
  • Date the legal title to the shares was transferred
  • Number of full and partial shares that were transferred.

Statements to participants for ISOs and ESPPs
Under the new law, statements still must be furnished to participants with regard to both ISOs and ESPPs. These statements must be provided by January 31, and it is anticipated that either delivery by mail or electronically generally will be permitted.

Deadlines
The deadlines to file Forms 3921 and 3922 with the IRS are February 28 for paper filers and March 31 for electronic filers. The deadline for distributing the statements to employees is still January 31.

Electronic Filing
You are required to file Forms 3921 and 3922 electronically if you have 250 or more returns to file with the IRS. This is a per-form requirement. So if you have 251 Forms 3921 to file and only 249 Forms 3922, then you only have to file the Forms 3921 electronically. Likewise, if you have 249 of each to file, then you don't have to file any of the forms electronically. But you can always file electronically on a voluntary basis.

Penalties for Late Filings

  • $15 per form if you file within 30 days of the deadline (maximum of $75,000 per year)
  • $30 per form if you file by August 1 (maximum of $150,000 per year)
  • $50 per form if you file after August 1 or never complete the filing (maximum of $250,000 per year)
  • At least $100 per form if the late filing or failure to file is due to intentional disregard (no annual maximum). It could be very expensive to intentionally disregard these filings.

In addition, if you fail to distribute the employee statements, you can be subject to an additional penalty of $50 per statement (maximum of $100,000 per year). The same penalty for intentional disregard applies--so if you intentionally disregard both filing the return and distributing the employee statement, then the minimum penalty is $200 per transaction with no maximum.

1099 Software W-2 Software  
TIN Matching Software EFile Software EFile Outsourcing Service
   Import Capabilities Tax Forms, Envelopes Presentation Supplies Integrated Data Management Systems, Inc.1099 Tax Forms
   6039 Compliance Jack Henry Forms Income Tax Folders DBA IDMS Account Ability1099 Envelopes
   6050W Compliance 1098 Forms, Envelopes First Class Envelopes 555 Broadhollow Road Ste 273W-2 Envelopes
   Electronic Reporting 1099 Forms, Envelopes Intuit ProSeries Melville, NY 117473921 Software
   Bulk TIN Matching 3921/3922 Forms, Envelopes Lacerte Software 1-888-IDMSINC (436-7462)3922 Software
   Combined Federal/State 5498 Forms, Envelopes CCH ProSystem fx Copyright © 2014 IDMS1099-K Software
   Screen Shots W-2 Forms, Envelopes Drake Software Follow Account Ability on Pinterest Follow Account Ability on Facebook Follow Account Ability on Twitter  
   Print and Mail Service 1099/W-2 Laser Kits Labor Law Posters Privacy StatementIncome Tax Folders
Account Ability 1099 and W-2 Software