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The following is not meant to be legal advice.

On December 19, 2007, the Internal Revenue Service (IRS) issued interim guidance on an information return to be filed with the IRS under Section 6039 of the Internal Revenue Code (Section 6039).

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.

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 January 31, 2008.