How to E-file Form 3921 for 2023 with TaxBandits?
What information is Required to File Form 3921?
- 1. Transferor Details: EIN, Name, Address
- 2. Employee Details: TIN, Name, Address
- 3. The fair market value (FMV) on the exercise date
- 4. The number of shares transferred
- 5. Information on the “transferor” if they are not the same corporation as the “payer” completing the form.
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Benefits of Filing Form 3921 with TaxBandits
Internal Audit Check
TaxBandits audits the forms you create against the IRS Business Rules to promote accuracy.
When you opt-in to TIN Matching services, TaxBandits checks all recipient TINs against the SSA database.
Deliver Recipient Copies
When you opt-in to postal mailing services, TaxBandits prints, and mails all recipient copies on your behalf.
USPS Address Validation
All recipient addresses are checked against the USPS database. This ensures that all copies are mailed to a verified address.
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Frequently Asked Questions on Form 3921
What is IRS Form 3921?
Form 3921 is used to report certain information about stock incentive options that are offered by a corporation during a calendar year. When corporations offer incentive stock options (ISO) to their employees and the employees exercise these options, this must be reported to the IRS.
There are three copies of Form 3921:
- Copy A must be filed with the IRS
- Copy B must be distributed to the employee that exercised the stock option
- Copy C should be maintained for the corporation’s records
What Information is Required to file Form 3921?
You need the following information in order to file the 3921 tax Form
- The information of the employee who exercises their ISO ( Incentive Stock option).
- The employees’ tax ID numbers
- Company basic information ( Legal Name, Address)
- Company TIN number
- Date of Option Grant
- Date of Option Exercise
- Exercise Price per Share
- Number of Shares Transferred
- FMV per Share on Exercise Date
When is the due date to file Form 3921?
There are a few different deadlines where Form 3921 is concerned. The deadline to distribute employee copies is January 31st. The deadline to file paper copies with the IRS is February 28th, and the deadline to file electronic copies with the IRS isn't until April 1st.
It is important to note that when a company plans on filing paper copies of an IRS tax form, they are only able to do so if there are less than 250. Otherwise, electronic filing is required.
What are the penalties for not filing Form 3921?
The IRS The IRS penalties for filing Form 3921 late or failing to file altogether can vary. The IRS can charge anywhere from $60-$310 per form depending on how late it is filed or if the corporation neglected to file at all
What is the difference between IRS Form 3921 and 3922?
While both forms are used to report information about employee stock options, Form 3291 is used to report stocks that were transferred when an employee exercised their Incentive Stock Options (ISO) under IRS Section 422(b). Form 3292 is used when stocks are transferred through an Employee Stock Purchase Plan (ESPP) under IRS Section 423(c).
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