Form 3921 is issued by employers to employees who exercise an Incentive Stock Option (ISO). It records the details of stock purchased through an ISO, which is crucial for Alternative Minimum Tax (AMT) reporting and calculating potential capital gains when shares are sold.

What Form 3921 Reports

Form 3921 includes:

1. Grant date and exercise date of the ISO

2. Number of shares exercised

3. Exercise price per share

4. Fair market value of the stock on the exercise date

5. Employee and employer information

For official IRS guidance, visit IRS Form 3921 Instructions.

Who Receives Form 3921?

1. Employees who exercised ISOs during the year receive the form.

2. Employers file Form 3921 with the IRS to report ISO exercises.

Employees do not submit the form themselves, but the information is necessary to report AMT adjustments and capital gains on their tax returns.

Form 3921 Recipient Deadline

For tax year 2025:

1. Recipient copy deadline: February 2, 2026

This ensures employees have the necessary information in time to prepare accurate tax filings.

Tax Implications of Exercising an ISO

1. Regular income tax: Generally, there is no immediate tax at the time of exercise.

2. Alternative Minimum Tax (AMT): The difference between fair market value and exercise price may trigger AMT.

3. Capital gains: Selling the stock later may result in long-term or short-term capital gains, depending on holding periods.

Properly using Form 3921 ensures compliance with IRS rules and correct tax reporting.

FAQs: Form 3921

1. Do I need to file Form 3921?
No, your employer files it. You use it to calculate taxes, especially AMT and capital gains.

2. What if I didn’t receive Form 3921?
Contact your employer or HR department immediately.

3. Is exercising an ISO taxable?
Not for regular tax, but AMT may apply based on the spread between fair market value and exercise price.

4. What if the form has errors?
Verify all details with your employer and request a corrected form if needed.

Get Help With Form 3921

ISO exercises can be complex, especially with AMT considerations. Professional assistance ensures accurate reporting and compliance.

Call +1-866-513-4656 for expert help with Form 3921, ISO exercises, and tax reporting.

Final Note

If you receive Form 3921, review it carefully. The recipient deadline is February 2, 2026, and accurate reporting ensures compliance and proper tax treatment.

Call +1-866-513-4656 today for trusted guidance on ISO reporting.