What is Form 3922?
Form 3922 is a tax document that reports the transfer of stock obtained through an Employee Stock Purchase Plan (ESPP). It contains key information such as the exercise price, fair market value, and transfer date. This form is crucial for employees as it aids in accurately reporting their tax liabilities when selling shares. Additionally, it helps companies adhere to IRS regulations, reducing the risk of penalties and tax complications related to stock options. Understanding this form is essential for both employees and employers involved in stock transactions.
What is Form 3922 used for?
Form 3922 is important for employees who participate in stock purchase plans. Here’s what it’s used for:
- Records the transfer of stock from an Employee Stock Purchase Plan (ESPP).
- Provides information for accurate tax reporting on stock sales.
- Assists in calculating capital gains or losses from stock sales.
- Serves as a record for determining the basis for gain or loss on stock dispositions.
How to fill out Form 3922?
- 1
Enter the transferor's name, address, and Taxpayer Identification Number (TIN).
- 2
If applicable, fill in an account number for multiple accounts.
- 3
Complete Box 1 with the date the option was granted.
- 4
Input the date the option was exercised in Box 2.
- 5
Provide fair market values in Boxes 3 and 4 for the grant and exercise dates.
- 6
Enter the exercise price per share in Box 5.
- 7
Record the number of shares transferred and the transfer date in Boxes 6 and 7.
Who is required to fill out Form 3922?
The corporation whose stock is being transferred must complete Form 3922 to report the transfer to the Internal Revenue Service (IRS). This includes providing details about the stock purchase and transfer dates.
Employees who have transferred stock under an Employee Stock Purchase Plan use Form 3922 to determine their adjusted cost basis for tax reporting. They also report capital gains or losses related to the stock sale.
When is Form 3922 not required?
Form 3922 is not required for nonresident alien employees who do not receive a Form W-2 from the corporation. Additionally, if a non-employee, such as a trust or estate, completes the original transfer of stock ownership, no form is needed.
When is Form 3922 due?
The deadline for Form 3922 is January 31 to provide a copy to the employee. If you are filing on paper and have fewer than 250 forms, the due date is February 28. For electronic filing with the IRS, if you have more than 250 forms, the deadline is March 31.
How to get a blank Form 3922?
This form is issued by the corporation that tracks the transfer of stock acquired by employees through an Employee Stock Purchase Plan. Remember, our platform helps you fill and download forms, but does not support filing.
Do you need to sign Form 3922?
No, Form 3922 does not require a signature from the employee. However, it must be reviewed and signed by an authorized representative of the transferring corporation. It’s always wise to check for the latest updates to ensure compliance. With PDF Guru, you can fill out the form, download it for your records, and complete any additional steps needed outside of our platform.
Where to file Form 3922?
Form 3922 is not submitted to the IRS. Instead, keep it with your tax records for future reference.
Store it safely with your investment paperwork, as it contains vital details like cost basis for selling shares.
