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NASPP Essentials

Figuring Out Section 6039 Filings
Jan 12,2021

Under Section 6039 of the Internal Revenue Code, employers must file returns with the IRS for employees who have exercised incentive stock options during the year or transferred shares acquired pursuant to Section 423 qualified employee stock purchase plans. This article provides an in-depth summary of the mechanics of preparing the filings on Form 3921 (ISOs) and Form 3922 (ESPPs) that are necessary to fulfill this requirement.

Tax Reporting Guide for Stock Plan Transactions
Nov 18,2020

A series of tables indicating where income attributable to various stock plan transactions is reported on Form W-2 and Form 1099-MISC.

Stock-for-Stock Option Exercises
Dec 05,2018

This article reviews the mechanics of stock-for-stock exercises, as well as the tax, accounting, and securities law considerations.

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Latest Developments

Reminder:  ISO and ESPP Information Returns and Statements
Jan 18,2018

Participant statements required under Section 6039 are due by January 31. Here's what you need to know.

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Auto-Cancel Options: A Smart Way to Address an Old Problem
Mar 31,2020

This article by Infinite Equity proposes a solution for the age-old problem of underwater stock options.

2018 Deadlines Approach to Furnish ISO and ESPP Information Statements/Returns
Jan 19,2018

Under Section 6039, participant statements for ISOs and ESPPs must be distributed by January 31.

Implications of Modifying Underwater Share Options
Apr 01,2009

Many companies, knowing that out-of-the-money, or underwater, share options can affect the morale and retention of key employees, are considering whether and how to modify outstanding awards. Companies exploring strategies should understand their accounting implications as well as the business, organizational, and regulatory concerns that are the context for the strategies. This edition of Defining Issues describes the accounting implications of the more common approaches and some basic factors that should be considered when a company tailors a strategy to its specific circumstances.

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Underwater Stock Options: Is a Stock Price Forfeiture Provision the Answer?
Jan 16,2020
Jennifer Namazi

Could a stock price forfeiture provision in grant agreements solve the challenge of what to do about substantially underwater options?

Implementing an Auto Exercise Program for Stock Options
Jun 27,2019
Jennifer Namazi

Solving the conundrum of in-the-money stock options that expire unexercised.

Section 6039 Filings Go Online?
Dec 11,2018
Barbara Baksa

Forms 3921 and 3922 are now available as online fillable forms. Sort of.

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Sample Documents

Example 6039 FAQ for Employees
Jan 12,2021

Sample FAQ for employees on Forms 3921 and 3922.

ISO/ESPP Flow Charts: Section 6039 Flow Charts
Jan 12,2021

This presentation are a set of example sample flow charts that explain how employees should use the information in Forms 3921 and 3922 to report ISO and ESPP transactions on their tax returns. There are separate flow charts for situations where the 1099 reporting is unknown, is known to be net of fees, and is known to not be net of fees.

Understanding Compensatory Stock Options
Nov 30,2018

This article submitted by Raymond James provides a review of the terminology, exercise techniques and tax treatment of stock options.

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Top Trends in Equity Plan Design
Oct 23,2019

Find out the latest practices and trends in stock compensation!

Trends and Analysis from the 2010 Stock Plan Design Survey
Aug 10,2010

Find out the latest practices and trends in stock compensation!


Surveys & Studies

Executive Summary and Selected Results for the 2019 Domestic Stock Plan Design Survey
Mar 10,2020

Key trends in the design of restricted stock/unit, performance award, and stock option programs.

2018 Top 250 Report
Nov 13,2018

This 46th annual FW Cook Top 250 Report details the long-term incentive practices and trends of the 250 largest companies in the Standard & Poor’s (“S&P”) 500.

2017 Top 250 Report
Aug 25,2017

This report presents information on long-term incentives granted to executives at the 250 largest U.S. companies in the S&P 500. The report covers LTI grant types and usage by industry, equity mix, vesting and other award terms, performance plan characteristics, CEO LTI grant value mix, and performance measure adjustments for impact of currency fluctuations.

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Regulations & Statutes

California Stock Option Guidelines
Jun 22,2019

CA FTB Publication 1004, which provides information on how stock compensation is taxed for both residents and nonresidents.

Section 422: Incentive Stock Options
Dec 22,2017

The text of Section 422 of the Internal Revenue Code, which defines incentive stock options.

Form 3921
Oct 10,2017

IRS Form 3921, used to report ISO exercises.

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The National Association of Stock Plan Professionals is the largest and oldest professional association for the stock and executive compensation community, with over two decades of leadership providing expert resources, education and other benefits for our more than 6,000 members across 32 affiliated chapters.


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