Tax Forms: Who Receives What
- 1099-B for sale of stock: Anyone who is not W8-certified (generally non-U.S. employees)
- 1099-DIV for sale of free and clear shares: Anyone who is W9-certified only (generally employees with a U.S. Social Security number)
- 1042-S for international participants who have dividend income for the year: Anyone who is not W9-certified
- 3921 for exercise of an Incentive Stock Option (ISO): Anyone who exercises an ISO
- 3922 for transfer of stock through an employee stock purchase plan (ESPP): Anyone who transfers ESPP shares
Note to ensure that these dates stay consistent year-to-year and not just for 2018 season. (And your employees must receive their W-2 forms by January 31st.) The penalties for late or omitted filings of Forms W-2, 1099, 3921 and 3922 have been adjusted upward based on inflation. As always, it is important to adhere to the IRS’s deadlines to avoid fines.