IRS Form 3921, 3922: Account Ability Releases Section 6039 Compliance Solutions to Assist ETRADE Corporate Services Equity Edge Clients with 2012 Reporting Requirements

Account Ability offers complete outsourcing solutions as well as in-house solutions to small and medium size businesses. Outsourcing solutions include statement generation, IRS E-filing and print and mail services. In-house solutions populate and format the required participant information into IRS Forms 3921 (ISO) and 3922 (ESPP) while keeping sensitive participant data inside the company firewall. Both solutions integrate effortlessly with data extracts from ETRADE Corporate Services Equity Edge software.

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Account Ability Tax Form Preparation Software

Account Ability Tax Form Preparation Software

I want to tell you how impressed I am with your service. I plan to pass along this information to our ETRADE relationship manager.

Melville, New York (PRWEB) December 30, 2011

Integrated Data Management Systems, Inc. (IDMS), a leading provider of 1099 and W-2 software, today announced the release of its Account Ability Tax Form Preparation Software to help businesses comply with IRS regulation section 6039. As amended by Section 403 of the Tax Relief and Health Care Act of 2006, section 6039 requires corporations to file an information return with the IRS, in addition to providing employees with an information statement, following a stock transfer.

Returns required by §1.6039-1(a) of these final regulations and information statements required by §1.6039-2(a) of these final regulations must be made using IRS Form 3921, Exercise of an Incentive Stock Option Under Section 422(b). For each transfer made in 2011, the employer must provide the following information to the IRS on Form 3921:

Name, address and EIN of the company transferring the stock
The name, address and EIN of the company whose stock is being transferred
Name, address and social security number of the recipient of the stock transfer
Date of option grant
Exercise price per share
Date of option exercise
Fair market value per share on the date of exercise
Number of shares transferred.

3921 data extracts created by ETRADE Corporate Services Equity Edge software contain the above required information.

Returns required by §1.6039-1(b) of these final regulations and information statements required by §1.6039-2(b) of these final regulations must be made using IRS Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c). For each transfer made in 2011, the employer must provide the following information to the IRS on Form 3922:

Name, address and social security number of the recipient
Name, address and EIN of the company whose stock is being transferred
Date of option grant
Fair market value per share on the grant date
Exercise price per share
Date of option exercise
Fair market value per share on the date of exercise
Date the legal title to the shares was transferred
Number of full and partial shares that were transferred.

3922 data extracts created by ETRADE Corporate Services Equity Edge software contain the above required information.

Account Ability imports both 3921 and 3922 data extracts. Once imported, ETRADE Corporate Services Equity Edge clients easily produce statements to participants as well as transmittal files required by IRS. If the need should arise, IDMS offers free unlimited toll-free and remote desktop support to all licensed users of Account Ability.

"I want to tell you how impressed I am with your service and your very prompt response to emails and phone calls. I plan to pass along this information to our ETRADE relationship manager who recommended you." said Karen H. Woodfall, C.P.P. of Airvana Network Solutions.

Statements to participants for ISOs and ESPPs

Under the new law, statements still must be furnished to participants with regard to both ISOs and ESPPs. These statements must be provided by January 31, and it is anticipated that either delivery by mail or electronically generally will be permitted.

Deadlines

The deadlines to file Forms 3921 and 3922 with the IRS are February 28, 2012 for paper filers and April 2, 2012 for electronic filers. The deadline for distributing the statements to employees is still January 31.

Electronic Filing

Filers are required to file Forms 3921 and 3922 electronically if there are 250 or more returns to file with the IRS. This is a per-form requirement.

Penalties for Late Filings

$15 per form for filing within 30 days of the deadline (maximum of $75,000 per year)
$30 per form for filing by August 1 (maximum of $150,000 per year)
$50 per form for filing after August 1 or never completing the filing (maximum of $250,000 per year)
At least $100 per form if the late filing or failure to file is due to intentional disregard (no annual maximum). It could be very expensive to intentionally disregard these filings.

In addition, failure to distribute employee statements can result in an additional penalty of $50 per statement (maximum of $100,000 per year). The same penalty for intentional disregard applies.

About IDMS:
During the past 25 years, more than 100,000 tax professionals have used Account Ability to file their information returns (1098, 1099, 3921, 3922, 5498, W-2G) and annual wage reports (W-2, W-2C).

As its motto states: "We are known by the companies we keep." Its client roster includes: American Express; University of Notre Dame; Sunsweet; H&R Block; New York State Comptroller's Office; Salvation Army; Virgin Atlantic; Lockheed Martin; Northrop Grumman; D.F.A.S.; NAACP; and many more.

Related Links:
Traditional Form 3921 Copy B for Employee
Substitute Form 3921 Copy B for Employee
Traditional Form 3922 Copy B for Employee
Substitute Form 3922 Copy B for Employee

Watch our 2 minute presentation on YouTube to learn more about Account Ability
http://www.youtube.com/watch?v=Rr5LCK2TW5Q

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