What exactly is Section 6039 all about?
Section 6039 of the Internal Revenue Code requires companies to provide annual informational reporting to participants who have received or transferred stock in conjunction with either a 423(b) qualified employee stock purchase plan or an incentive stock option plan. The reporting is intended to assist participants in filing tax returns which might be complicated due to ordinary income vs. capital gain/loss reporting. Every corporation — every corporation — is required to provide this informational reporting to their participants no later than January 31st of the following year of the purchase or exercise transaction.
Our 6039 Reporting Solution
We provide you an easy-to-follow layout for formatting your data in Excel. Once prepared, you provide us the file through our secure file transfer server.
We file Forms 3921 and/or 3922 with the IRS on your behalf.
We prepare the data necessary to complete your required participant statements and IRS filings.
Our highly-trained customer service representatives are available to answer your employees’ questions.
We create consolidated Form 3921 and/or 3922 for transactions in your qualified plans, minimizing costs and streamlining participant communications.
Need help preparing your data file?
Before we can start, we need your data, and we need it in a certain format. We do this in order to avoid errors with the data on our side. But collecting all that data and putting it into the proper format can provide challenges all its own. Not to worry. Our professional services group can help. We have a three-step process to help you get your data ready to go.
Step 1: Collect
Our team collects the data files together from your payroll department in whatever format you use, even if your data is in multiple formats from multiple payrolls across multiple subsidiaries and offices.
Step 2: Reconcile
We validate and reconcile each file, working with you to collect any missing data. We’ll even directly contact the different subsidiaries and offices to help save you time.
Step 3: Convert
We convert all files into the necessary format for our team to start the 6039 Reporting process.