SECTION 6039 REPORTING

Section 6039 Reporting

Our employees with their tax filings and help to minimize repeated questions to your stock department. Provide clear and complete communications to employees about their stock plan transactions. Due to regulations and costs, companies often still choose to send required or optional communications via regular mail instead of electronically. If you are mailing paper statement or forms to employees, there are so many reasons for you to outsource the function to MEC.

MEC has found that the most commonly mailed communications are the Forms 3921/3922, the Tax Summary which reports taxable events for stock options and restricted stock, and the Purchase Tax Summary which reports dispositions of ESPP shares. MEC has a proven method for consolidating communications into ONE YEAR-END PACKAGE and providing to impacted employees. Not only will you save time and money, but you will provide all applicable tax information to employees in one package, making things as clear and easy as possible for tax reporting.

My Equity Comp will project manage the 6039 process from beginning to end. We just need you to send your raw ISO exercise and ESPP purchase data through our secure site and we will have all we need to proceed. Transactions are aggregated by employee and Substitute Forms 3921/3922 are created using our in-house software. The Forms are then provided back to you in PDF format for approval and ultimate distribution to employees.

MEC is a mass-mailing expert. We have the equipment and the expertise to mail out large quantities of mail in a short period of time.

Why use My Equity Comp?

FLEXIBILITY: Form 3921 and/or Form 3922 – Also can help with filing under additional EIN(s) if necessary.

EXPERIENCE: Familiar with ALL Equity Compensation Software and outsourcing providers.

EXPERT GUIDANCE: Expert industry guidance. We have presented on 6039 to numerous forums.

SECURITY: All data files exchanged through a secure site for employee data privacy.

SUBSTITUTE FORMS: Consolidated forms in PDF format reduce mailing costs and employee confusion.

EXPLANATORY INSERTS: Communication for your employees to help them understand their forms.

MAILING: Reliable mailing of forms reduces your workload and gets forms to their destinations on time.

IRS FILING: Drop-off of file(s) to IRS site, including step-by-step updates throughout the process.

AUDIT: Will work with finance and legal departments to provide audit reports. Files are provided to client for future reference or for employees who later misplace a form.

YEAR-END STATEMENT MAILINGS: MEC can mail out separately or collate into the 6039 mailing.

6039 Form Filing Services

Beginning in tax year 2010, the IRS requires reporting of ISO (Incentive Stock Option) exercises on a Form 3921 and ESPP (Employee Stock Purchase Plan) transfers (purchases) on a Form 3922. These Forms need to be provided to the participants who performed the transactions as well as filed with the IRS.

My Equity Comp was the first to market in the entire equity compensation industry with a 6039 solution and subsequently a couple years later, was first to market again with a TIN Matching solution preventing costly penalties.

(MEC) has mailed well over Two-Million employee forms; and filed thousands of files with the IRS.

Quality service, expert guidance, and competitive pricing are the reasons why MEC has exceptional year-over-year growth, outstanding customer satisfaction, and the earned title of Industry Leader in 6039 Filing.

Mailing

Form Creation

Year-End Mailing