IRS Form 3921: ISO Exercise Reporting
US only: Form 3921 is an IRS information return required when employees exercise Incentive Stock Options (ISOs). Cake generates and packages the required copies for you.
Requires Cake Pro plan.
Who needs to file Form 3921
You must file if:
Your company is incorporated in the US
At least one employee exercised ISOs during the calendar year
Note: Form 3921 covers Incentive Stock Options (ISOs) only. Non-Qualified Stock Options (NSOs) are not reported on Form 3921.
Generate your Form 3921 data
Go to Compliance in the main menu.
Select Form 3921.
Click Download report for the tax year you're reporting for.
The export includes all required data for each ISO exercise: grant date, exercise date, exercise price, fair market value at exercise, and number of shares acquired.
Click Generate Copy B and Copy C.
Cake generates both copies automatically. Once ready, you'll find them under Documents → All documents → IRS → [Year], organised into separate Form 3921 - Copy B and Form 3921 - Copy C folders.
Completing your filing
Cake generates Copy B and Copy C for you, find them under Documents → All documents → IRS → [Year].
Use the downloaded CSV to prepare and submit Copy A to the IRS via your accountant or tax software.