IRS Form 3922 Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c) is for informational purposes only and is not entered into your return. You will need this information when you sell the stock, so the form should be kept for your records. When you sell the stock you should receive IRS Form 1099-B Proceeds from Broker and Barter Exchange Transactions which does need to be reported on your tax return. The information on Form 3922 will help in determining your cost or other basis, as well as your holding period.

IRS Form 3922

You have received this form because (1) your employer (or its transfer agent) has recorded a first transfer of legal title of stock you acquired pursuant to your exercise of an option granted under an employee stock purchase plan and (2) the exercise price was less than 100 percent of the value of the stock on the date shown in box 1 or was not fixed or determinable on that date.

No income is recognized when you exercise an option under an employee stock purchase plan. However, you must recognize (report) gain or loss on your tax return for the year in which you sell or otherwise dispose of the stock. Keep this form and use it to figure the gain or loss. For more information, see IRS Publication 525 Taxable and Nontaxable Income.
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