Corporations must now comply with an additional reporting requirement with respect to exercises of incentive stock options (nonqualified stock options are not subject to this new requirement). Beginning with ISO exercises occurring in 2010, corporations will have to file an information return with the IRS, in addition to providing a statement to the employee. The IRS has issued Form 3921 for this purpose, which corporations must use to satisfy these reporting requirements.

In general, the information to be provided on Form 3921 includes...