TaxBandits Knowledge Base

What is form 3922?

Form 3922 serves as a means to document specific details regarding stock incentives and transfers provided or offered by a corporation within a given calendar year. It becomes necessary when corporations extend Employee Stock Purchase Plans (ESPP) to their employees, and these employees subsequently purchase company stocks. In such cases, reporting this information to the IRS is required.

Form 3922 comprises three copies:

• Copy A is submitted to the IRS.
• Copy B is furnished to the employee who exercised the stock option.
• Copy C is retained for the corporation's internal records.