Form 3922


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What Is Form 3922?

The 3922 form is also known as the Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c). This is actually not the most common form in the country. If you are wondering what is a form 3922, you may be a part of a corporation that provides stock transfer through the stock purchase by the employee.

The form was created by the Internal Revenue Service Center Department of the Treasury. They released the form for the corporations that have employees pursuant to the exercise of the option of stock purchase. Each employee must have a separate blank sent by the corporation. Each legal title’s transfer of stock shares must be recorded in the new document as well.

The total exercise price must be less than 100 percent of the stock’s value on the grant’s date. Nor can the form be definable or fixed as of the grant date. The form 3922 IRS provides corporations with several copies. Individual copies should be sent to a specific person. You have to make sure you do it by the deadline.

Form 3922 Screenshot

What Do I Need the Form 3922 For?

  • You have to use tax form 3922 to report every transfer of the legal title of the stock’s share received by the employee to his/her exercise. If there is an option that a corporation provides on the open possibility for employees to buy stocks, it must report each transfer to the IRS;
  • Employees can use the 3922 tax form during the tax report period. The form has to be attached to others and sent to the IRS. However, the employee does not fill out the form. The IRS form 3922 must be received from the corporation;
  • IRS needs the form to make sure that all parties paid the taxes from the purchase.

How to Fill Out Form 3922?

Once you’ve learned what is form 3922 used for, you find the document more understandable for you. If you are an employee, all you need to do is to wait for the form to be sent to you from the corporation. A copy of it is sent to the IRS in advance. If you are a part of a corporation you have to fill out form 3922 tax. In this case, you have to follow basic recommendations.

The form is available on the IRS official website as well as on PDFLiner. PDFLiner is an online editor which allows you to fill in the blank after you open it and send it to all the parties online or via email. You can print the form and send it by regular mail as well, but you have to follow strict rules and be able to send it before the deadline.

There are three copies you have to send to the different institutions. Copy A must be sent to the Internal Revenue Service Center together with the 1096 form attached. Copy B must be sent to your employee. Copy C is traditionally left for the corporation. Now you can follow form 3922 instructions and fill out the document:

  1. Provide information about the corporation, including its name, address, ZIP, or postal code from the foreign country if it is situated there. Mention the federal identification number as well;
  2. Provide data on the employee, including the identification number, name, address, and account number;
  3. In sections 1 and 2 put the date when the option was granted and exercised;
  4. Write down the fair market price for a share on the grant date and on the exercise date in sections 3 and 4;
  5. Mention the exercise price for a share in section 5;
  6. Indicate the number of shares that were transferred in section 6;
  7. Put the date of the title transferred in section 7;
  8. Complete section 8 with the exercise price for a share.

Organizations That Work With Form 3922

  • Internal Revenue Service Center Department of the Treasury.
Fillable online Form 3922
(4.7 / 5) 110 votes
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