Form 3921


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Get your Form 3921 in 3 easy steps

  • 01 Fill and edit template Fill Form 3921
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  • 03 Export or print immediately Export Form 3921

What Is Form 3921?

If you don’t know what is form 3921, you may have never received this report from the corporations. This form is called Exercise of an Incentive Stock Option Under Section 422(b). It is one of the most complicated forms that requires your total attention, or you will be fined for your mistakes. It is completed and sent to the IRS whenever the employee owns the exercise shared with the incentive stock options.

The IRS must be informed whether the shareholder had the compensation of ISO. You have to include detailed information on the ISO exercise. Those who miss the general deadline for the form or make mistakes in it have to pay fines.

You can either file it electronically or send it by mail, but make sure that you have several days left before the deadline in this case since regular mail requires some time to deliver the tax form 3921 to the IRS. The general deadline is January 31 for copy B, February 28 for copy A, and March 31 for copy A if you file electronically.

What Do I Need the Form 3921 For?

  • The IRS form 3921 is required from the companies that have employees who exercise their ISOs during this year. The form matches one exercise for the year. Yet, if the employee that has ISOs is not a resident and does not require to be mentioned in the W-2 form, you don’t have to file the form;
  • Every corporation that is defined as such and transfers to the person's stock’s share to the exercise has to make the report. It must be filed every year when the employee receives the ISO exercise;
  • You have to use form 3921 IRS if you are any of the parties that distribute shares or payments based on the plan that matches the IRS description.

How to Fill Out Form 3921?

Form 3921 in PDFLiner screenshot

The 3921 form IRS has to be filled by the deadline following IRS strict rules. There are numerous copies that must be sent to different parties. Yet, the most crucial is Copy A which must be filed to the Internal Revenue Service Center by the deadline. It is highlighted in red. Copy B is for the employee, and you have to send it during the tax report period. Copy C is for Corporation and must be retained by the corporation whose stocks are transferred. Copy D is sent to the Transferor.

All copies come with specific form 3921 instructions. You have to follow them to avoid mistakes. You can fill the form via PDFLiner which provides all the tools for editing, and since IRS allows you to send the form online, you can easily do it within the editor. Pay attention to this step-by-step guide to the 3921 tax form:

  1. Provide the information on the transferor, including the name, address, postal code, and TIN;
  2. Write down the TIN of the employee, name, and detailed address. Don’t forget the account number. If you don’t know it yet, find out by following the instructions in the document;
  3. Fill down the date when the option was granted and the date it was exercised;
  4. Provide exercise price per share and the fair market share’s value on the exercise date;
  5. Indicate the number of shares that were transferred;
  6. Mention the other person if not the transferor whose stock is transferred in section 6, if there is one.

How to file form 3921?

Form 3921 is a tax form used to report the exercise of an Incentive Stock Option (ISO) under Section 422 of the Internal Revenue Code. The form must be filed with the Internal Revenue Service (IRS) by the employer, typically in January of the year following the exercise of the ISO.

Step 1: Gather the required information. You will need the name, address, and Social Security number of the employee, the date the ISO was granted, the date the ISO was exercised, the exercise price, the fair market value of the stock at the time of exercise, and the total number of shares involved.

Step 2: Download the form from the IRS website. The form can be found here or at the official IRS website.

Step 3: Fill out the form. Enter the required information in the appropriate fields.

Step 4: Calculate the compensation income. Use the information from the form to calculate the compensation income.

Step 5: Submit the form. Mail the completed document to the IRS using 1096 or file form 3921 online

Step 6: Split Copy B and send it to the Employee.

Spliting Form 3921 in PDFLiner

Organizations That Work With Form 3921

  • Internal Revenue Service Center Department of the Treasury.

Form 3921 Popular Questions

  • How to report form 3921?

    You have two options here when it comes to reporting the form: you can either send it online or use regular mail. Pay attention to the fact that online reports can be received faster than the ones you’ve to send by regular mail. In case you have over 250 such forms from the corporations to be sent, the IRS requires receiving files electronically.

    The requirements still can be changed in the new year, so you need to keep up with the news. You also have to send copies of the form to your employee and transferor, and leave one for the corporation. All of them must be received by the deadline.

Fillable online Form 3921
(4.9 / 5) 36 votes
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