The following is not meant to be legal advice.
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Section 6039 requires companies to file an information return to the IRS, in addition to giving employees an information statement, for exercises of Incentive Stock Options (ISOs) or transfers of shares acquired under an ESPP.
Because there are no regulations yet on the subject, the IRS temporarily waived the obligation to file an information return to the IRS for stock transfers under Section 6039. Though, there is the requirement to furnish employees with a written statement containing certain information as discussed in the current regulations.
This means employers should furnish employees who exercised ISOs, or sold or otherwise transferred shares acquired under an ESPP, with the required information statement by
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