Latest Updates on Section 6039 Reporting and ESPP Regulations
Presentation
8 September 2010
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The Internal Revenue Service (IRS) has published proposed regulations under Section 6039 of the Internal Revenue Code that beginning with transactions in 2010, companies will be required 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). In addition, companies will also be required to file these same forms with the IRS. For companies filing more than 250 forms of either the 3921 or 3922, the IRS requires that they file those forms electronically in the special file format specified in IRS Publication 1220.
Key Deadlines:
- January31, 2011 Forms 3921 and 3922 to be delivered (postmarked) to employees
- February 28, 2011 Physical Forms to be filed with IRS (less than 250 forms)
- March 31, 2011 Electronic Forms to be filed with IRS (250 or more forms)
Are you ready to file these new forms?