Guide for Filing Form 3922 for 2022 Tax Year
Updated on August 22, 2022 - 10:30 AM by Admin, TaxBandits
IRS Form 3922 is used by the companies to report the transfer of stock acquired by the employee through the Employee Stock Purchase Plan (ESPP) under section 423(c) (Where the exercise price is less than the 100% value of the stock on the date the option was granted or was not fixed or could not be determined).
1. What is IRS Form 3922?
Form 3922 is an IRS tax form used by corporations to report the transfer of stock options acquired by employees under the Employment Stock Purchase Plan (ESPP). Generally, This form is used for informational purposes only. Employees don’t need to include the information in the tax returns if they don’t sell the acquired company stock.
However, when the employee disposes of the stock, Form 3922 can be used to determine the gain or loss of the transaction, which should be reported on IRS Form 1099-B.
2. What Information Should be Reported in Form 3922?
Each Form 3922 that you report to the IRS requires the following information:
- Business information such as business name, address, and TIN
- Employee information such as employee name, address, and TIN
- Account Number
- Date Option Granted
- Date Option Exercised
- Fair Market Value Per Share on Grant Date
- Fair Market Value Per Share on Exercise Date
- Exercise Price Paid Per Share
- Number of Shares Transferred
- Date Legal Title Transferred
- Exercise Price Per Share on the granted date
3. Who Must File Form 3922 for 2022?
Companies with employees who acquired the given stock option under the employee stock purchase plan should file Form 3922. This form is used only for informational purposes and should be distributed to the employee by the end of January 31st of the following year when the first stock transfer is acquired.
4. Form 3922 Due Dates for 2022 Tax Year?
The IRS requires companies to send a recipient copy of Form 3922 to the employee on or before January 31st. If you are filing through paper, the deadline for Form 3922 falls on February 28th, and the e-filing should be reported to the IRS before March 31st.
Form 3922 Deadline For the Tax year 2022:
| Filing Type | Deadline |
|---|---|
|
Recipient Copies |
January 31st, 2023 |
|
Paper Copies |
February 28th, 2023 |
|
E-filing Copies |
March 31st, 2023 |
5. How to File Form 3922 for 2022 with TaxBandits?
IRS Form 3922 can be filed in two ways: on paper or electronically. Generally, the IRS prefers e-filing since it is easy to file, highly accurate, and more secure. If you are planning to file Form 3922 online for the 2022 tax year, TaxBandits is here to help you with making your filing process easier.
Follow the below simple steps and E-file your Form 3922 in minutes.
- Step 1: Choose Form 3922
- Step 2: Enter Form 3922 Details
- Step 3: Review and Transmit it to the IRS
File Form 3922 Online with TaxBandits to receive instant updates on the IRS status of your form. Get started with TaxBandits today and begin e-filing for as low as $0.80/Form.