Form 3921 2010-2025

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Conversely, if an employee purchases company stock through an ESPP, the company would file Form 3922 to report the transfer of ownership of the purchased shares to the employee. In essence, Form 3921 deals with stock options exercised, while Form 3922 deals with stock purchased through an employee stock purchase plan.
If you file Form 3921 within 30 days after the due date, you will be subject to a penalty of $60 per form, up to a maximum of $630,500 per year. The maximum penalty is $220,500 for small businesses whose taxable income for the last three years is below an average of $5 million.
The Difference Between Form 1099B and Form 3921 The main difference between the two forms is that Form 1099-B reports on the sale of stock, while Form 3921 reports on the exercise of an ISO.
Form 3921 Exercise of an Incentive Stock Option Under Section 422(b), is for informational purposes only and should be kept with your records. It does not need to be entered into your return unless you still hold the stock at year end (if you do, see the previous information regarding Alternative Minimum Tax (AMT)).
Generating Form 3921 in Carta Navigate to Compliance Tax Form 3921. Click Generate. Select the Effective Year of the report from the dropdown. Review and complete any missing information, then check the box to confirm company data.
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Form 3921 is an IRS form that must be filed by a company when an employee has exercised an incentive stock option (ISO) in the last tax year. Form 3921 informs the IRS which shareholders received ISO compensation.

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