What is form 3922?

Form 3922, also known as the Transfer of Stock Acquired Through an Employee Stock Purchase Plan, is a tax form used to report the transfer of stock acquired through an employee stock purchase plan (ESPP). This form must be filed by the employer with the IRS and provided to the employee who purchased stock through an ESPP during the tax year.

The form includes information about the employee, the employer, and details about the stock purchase such as the date of purchase, the fair market value of the stock on the purchase date, and the exercise price paid by the employee. This information is used by the employee to calculate the cost basis of the stock for tax purposes.

Employees who receive Form 3922 must report the information on their tax return, specifically on Schedule D (Capital Gains and Losses) and Form 8949 (Sales and Other Dispositions of Capital Assets). It is important for employees to keep accurate records of their stock purchases and sales to ensure they are reporting the correct information on their tax returns.