Section 6039 of the Internal Revenue Code requires employers to provide certain information to employees who exercised incentive stock options (ISOs) or acquired stock under an employee stock purchase plan (ESPP) during 2010.

The necessary information must be provided to the employees by Jan. 31, 2011, with a corresponding report filed with the Internal Revenue Service no later than Feb. 28, 2011 (March 31, 2011, if filed electronically).

Affected employers should take action now, if they have not done so already. This advisory provides a brief background on Section 6039 and an analysis of what information should be provided.