Form 3921 reports the exercise of an Incentive Stock Option (ISO) by an employee. Employees must receive the form by February 2, 2026, for tax year 2025.
Form 3921 Recipient Deadline: February 2, 2026. Call +1-866-513-4656.
Form 3921 is issued by corporations to employees who exercise Incentive Stock Options (ISOs). It provides essential details to calculate Alternative Minimum Tax (AMT) and ensures proper reporting of potential capital gains when the stock is sold.
Key Details Reported on Form 3921
Form 3921 includes:
- Date of ISO grant and exercise
- Number of shares exercised
- Exercise price per share
- Fair market value of the stock on exercise
- Employee and employer information
For official IRS guidance, see IRS Form 3921 Instructions.
Who Receives and Uses Form 3921?
- Employees who exercised ISOs during the tax year receive the form.
- Corporations issue Form 3921 to report ISO exercises to the IRS.
Employees do not file the form itself, but the information is necessary to calculate AMT or future capital gains accurately.
Form 3921 Recipient Deadline for 2026
For tax year 2025:
- Recipient copy deadline: February 2, 2026
This ensures employees have enough time to include ISO exercise information in their tax returns.
Tax Implications of ISO Exercises
- Regular income tax: ISO exercises are generally not taxable immediately.
- Alternative Minimum Tax (AMT): The difference between fair market value and exercise price may be subject to AMT.
- Capital gains tax: When shares are sold, gains may qualify for long-term capital gains if holding period requirements are met; otherwise, gains may be short-term.
Proper reporting of Form 3921 ensures compliance with IRS rules and accurate tax treatment.
FAQs: Form 3921
1. Do I need to file Form 3921?
No. Your employer files it. You use the information for tax reporting and AMT calculations.
2. What if I didn’t receive Form 3921?
Contact your employer to request a copy immediately.
3. Is exercising an ISO always taxable?
Not for regular tax purposes, but AMT may apply based on the spread between fair market value and exercise price.
4. What should I do if the form contains errors?
Verify all information with your employer and request corrections if necessary.
Get Professional Help With Form 3921
ISO exercises and AMT reporting can be complicated. Expert guidance ensures correct reporting, reduces potential tax liability, and prevents IRS issues.
Call +1-866-513-4656 for assistance with Form 3921, ISO exercises, and AMT compliance.
Final Note
Receiving Form 3921 requires attention. The recipient deadline is February 2, 2026, and accurate reporting ensures compliance and proper tax treatment.
Call +1-866-513-4656 today for trusted ISO reporting guidance.
