Hello Carta Community!
I'm Brianne, your Customer Enablement Manager here at Carta. Over the last 5 years in various customer facing roles, I've worked closely with thousands of private companies during the tax season. Through my experience, I've encountered many situations where users struggle with questions surrounding Form 3921 generating, delivering, and filing.
Form 3921: What, when, where & how?
Form 3921 is an IRS tax form used to report the exercise of an Incentive Stock Option (ISO) during the previous calendar year. Companies are required to report the transaction using these forms directly to the IRS and are also responsible for providing Copy B to employees for their tax filing related to each exercise. Understanding the different deadlines, what information is needed to generate the forms, and how Carta can simplify the process is crucial for remaining compliant during tax season.
Step-by-Step Guide: How to Generate and Deliver Form 3921's in Carta
Here are some resources to help you through the process:
Frequently Asked Questions (FAQs)
Q: Does Carta send Form 3921s to the IRS on behalf of a company?
A: Carta does not file the Form 3921s on behalf of the company. However, Carta can generate an electronic version of the forms for quick uploading directly to the IRS website if you have a TCC code.
Q: I don't have a TCC code. Can Carta still help?
A: Yes! The TCC code is only required to generate Copy A–the electronic version of the forms needed to upload directly to the IRS website. However, you can still generate the forms and deliver them to your employees without a TCC code.
Q: How can I request a TCC code?
A: Carta is not involved in the process of requesting a TCC code. But you can learn how to request one on the IRS website here.
Q: I'm not sure my company generated Form 3921s in the past. Can I only generate Form 3921s for 2023?
A: If your company has historical exercise information recorded in the platform, Carta can generate Form 3921s for each year there have been ISO exercises. When generating the forms, you will select which year you'd like to generate the forms for. Navigate to Securities > Review exercises to see your exercise history.
Have more questions? Ask them below!
I encourage everyone to post any questions you might have in the comment section. I'll be happy to address them or direct you to the relevant resources. This way, we can learn from each other's experiences. Looking forward to your participation!
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Brianne Villamor
Customer Enablement Manager
Carta
Santa Cruz, CA
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