Deadlines Approaching For Employer Return Requirements For ISOs And ESPPs – Reporting Requirements For 2014

Section 6039 of the Internal Revenue Code of 1986, as amended (the "Code"), requires corporations to furnish information statements to their employees (including former employees) and to the Internal Revenue Service ("IRS") with respect to (i) the exercise of an incentive stock option ("ISO") described in Code Section 422(b) and (ii) the transfer of shares granted under certain employee stock purchase plans meeting the requirements of Code Section 423(b) ("ESPPs"), in each case occurring during calendar year 2013.

Reporting Requirements

Reporting to Employees

Employers are required to provide information statements to employees on Form 3921 (for ISOs) and Form 3922 (for ESPPs) by January 31 of the following year in which each transfer of stock occurs pursuant to an exercise of an ISO or through an ESPP, as applicable.