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The Venture Alley A blog about business and legal issues important to entrepreneurs, startups, venture capitalists and angel investors.

Filing deadline reminder for companies with incentive stock options; reports must be delivered by January 31

Posted in For Entrepreneurs and Companies, News and Recent Events, Tax

pic-trent.jpgCONTRIBUTED BY
Trent Dykes
trent.dykes@dlapiper.com

A reminder to companies that had incentive stock option exercises in 2012, Section 6039 of the Internal Revenue Code requires a corporation to furnish a written statement to any employee or former employee who either exercised an incentive stock option during 2012 or during 2012 first transferred legal title to shares acquired under the corporation’s Section 423 employee stock purchase plan. The corporation must furnish these statements on Forms 3921 and 3922 no later than January 31, 2013.

These corporation must also file information returns providing the same information with the IRS. This requirement applies to both privately held and publicly traded corporations.

Our executive compensation and employee benefits colleague William Hoffman provides more detail regarding this deadline and the related requirements here.