An Incentive Stock Option (ISO) is a way for corporations to attract and retain employees by granting the employee the right to purchase a certain number of shares of stock at a pre-established price. The 2006 Tax Relief and Health Care Act (TRHCA) mandated that starting in 2011, a corporation must file an IRS Tax Form 3921 each time it transfers stock to an employee who has exercised an incentive stock option, with an exception made for employees who are non-resident aliens. 3921 software at the site 1099fire.com makes it easy to file IRS Tax Form 3921 by paper or electronically. Service bureau and mail house solutions are also available.
IRS Form 3921 includes such information as the date the option was granted, the date the employee exercised the option, the number of shares of stock transferred to the employee, the fair market value (FMV) of the stock when the option was exercised, and the exercise price of the stock. There is a space for the mailing address and federal identification number (FIN) of both the transferor and the employee, and for the name, address and EIN of the corporation issuing the stock, if other than the transferor.
Paper Filing, Electronic filing, Service Bureau…
Form 3921 can be filed by paper or electronically to the IRS. “Our 3921 software makes it easy to import from Excel, print and electronically filing IRS Form 3921 quickly and easily”, said Erich J. Ruth, Technical Support for 1099FIRE, a market-leading provider of 3921 software and services. Sample Excel templates can be found on the website 1099fire.com which will import into the 1099FIRE software or technical support can guide you through the process of importing by phone or email.
Electronic reporting of information returns eliminates the need to submit paper documents to the IRS. Electronically filed information may be submitted to the IRS 24 hours a day, 7 days a week.
“Electronic filing of Form 3921 is easy to do”, said Ruth and “The system is updated each year to reflect the format changes that are made by the IRS”. 1099FIRE software creates original, replacement, corrected and test files in the format required by the IRS for electronic transmission.
1099FIRE is the only company to offer One-Touch E-Filing. Just click a button and the software will automatically log in and upload your file to the IRS FIRE system. You will receive verification within seconds of receipt of your file.
Filing information returns can be stressful. 1099FIRE can eliminate the stress of filing information returns by electronically filing in a timely manner and at an affordable price. 1099FIRE will beat any competitor price; attain a quote for any service from any competitor and 1099FIRE will provide same, if not more complete, service at a lower price.
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Looking Ahead…
Furnish Copy B to the employee by January 31 of the year following the year of exercise to the IRS. Furnish Copy C to the corporation whose stock is being transferred by January 31 of the year following the year of exercise of the ISO.
File Copy A of this form with the IRS by February 28 of the year following the year of exercise of the ISO. If you file electronically, the due date is March 31 of the year following the year of exercise of the ISO.
