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New ESPP reporting on Form 3922.

Scott Broberg's Profile

Employees purchase ESPP stock at a discount on December 31st 2009 and sell January 4th 2010 as part of a same day sale, is the 3922 IRS reporting based on the purchase or sell date? This will make a difference on which ESPP reporting cycle you report on. We have two offering periods per year. Thanks.

Answers

Topic Expert
Nathan Curtis
Title: CPA
Company:
(CPA, ) |

I work with employee stock ownership plans, not employee stock purchase plans, but from my limited understanding of Form 3922, the reporting is based on the purchase date. The information required on Form 3922 focuses on the purchase date and doesn't have any information required for the sale date. Also, some employees won't sell their stock right away, which would further suggest reporting should be on the purchase date. You should check with someone who deals with ESPPs on a regular basis to be certain, but that's my take.

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