Sec 6039 Compliance and Tidbits

Watch Out!  There are more road blocks than you think!

We've all been to one or more seminars on the IRC Sec 6039 and how to file the Forms 3921 and 3922.  Here are a few tidbits of recent information.

The actual red-lined IRS Forms 3921 and 3922:  The IRS red-lined paper Forms have not yet been sent out.  When you call the IRS, they inform you that they are way behind in filling the orders.  You can only use these red-lined Forms to paper-file to the IRS. You have until Feb 28th to do so.

Or E-Filing:  Much easier to electronically file.  You have until March 31.  You will need a TCC code or you may enlist a vendor who will file under their TCC code. 

Vendors can file for you: There are many vendors to chose from.  There are only 4 "universal" vendors.  Get ALL the specific information from your vendor before you enlist their services - what transactions will be filed, how, when, security, what will you receive as proof, cost.  Be sure this information is correct.  I HAVE DIRECTLY HEARD SEVERAL MISINFORMED STATEMENTS FROM VARIOUS VENDORS!

Software:  Also needs a close eye on newly-programmed reports.  Check them out yourself.  Review all announcements.

Box 4 on the Form 3921:  This should be the "FMV" as determined by the Board.  If an ISO SDS allows the sale price to be the FMV, then the sale price is the FMV for this transaction. 

We can advise you if you have questions.

Marianne Brannock-Hill, CTP CEP

President and Sec 6039 Compliance Advisor

FRS Equity Strategies, 408-727-0227