NOTE: This feature can be enabled upon request from companies that have an Employee Stock Purchase Plan.
From the IRS:
Corporations file this form (3922) for each transfer of the legal title of a share of stock acquired by the employee pursuant to the employee's exercise of an option granted under an employee stock purchase plan and described in section 423(c) (where the exercise price is less than 100% of the value of the stock on the date of grant, or is not fixed or determinable on the date of grant).
How to Use
- To generate Form 3922, navigate to Compliance > Section 6039.
NOTE: TCC is not required to generate Form 3922 Copy B for employees.
- Click Generate.
- Select the Effective Year of the report.
- Review any missing information, check off the box to confirm company data, then click Next: add contact info. If any information is missing, complete the information, then return to this stage.
If Company tax data is not complete:
- Navigate to Company > Settings.
- Click into the Profile tab.
- Enter Tax ID, TCC (required to generate Copy A, but not required for Copy B) and address.
If Stakeholder tax details are not complete, update missing data under the Stakeholder details tab of the same Form 3922 page
- The names, addresses, and SSNs can be edited individually by clicking Edit to the right of the stakeholder’s row.
- The stakeholder details can also be updated in bulk via Stakeholders > All stakeholders page. Review these instructions to bulk update stakeholder details.
5. If the missing data was entered in, return to the Compliance > Section 6039 page and click Generate to click through the steps to proceed and add company contact information. The company contact is formatted into the electronic Copy A .txt file that will be uploaded to the IRS site.
Click Generate Form 3922 to begin the generation of the files.
6. Refresh the page after some time if you see a spinning wheel or navigate away and return later.
7. Once generated, click Download reports for the tax year to download a .zip file to your local drive that contains all necessary data for Copy A (efile), and Copy B (statements).
The .zip file will be split out into the following three files:
- efile will be a specially formatted electronic .txt file.
NOTE: Do not edit this file. Only download and upload to the IRS FIRE site. If any data needs to be updated, repeat the initial steps for the same filing tax year to regenerate the reports and download the updated files.
- statements should be delivered to all holders who acquired stock through an ESPP by the January 31st deadline and can be delivered electronically on Carta by clicking the link to Deliver participant statements.
For any filing questions, contact your tax advisor.
Public and Private Market companies with an ESPP.
This feature can be enabled on demand by reaching out to our support team or Customer Success Managers.
The product team will be enhancing Form 3921 functionality to bring it more in line with the new Section 6039 admin experience.