It’s never too soon to prepare for year-end tax reporting

October 15, 2019 Hannah Bloomfield

With school back in session, Pumpkin Spiced Lattes returning, and year-end tax and reporting creeping up, you’re probably feeling like these events are starting earlier and earlier each year. While you’d be correct that these events are creeping into summertime, only one of these events can bring anxiety earlier than usual. Not to worry! We’re here to prepare you with information and steps you can take this fall to ensure you are prepared for successful year-end tax reporting.

Why should private companies care about year-end tax reporting?

  • When there is a transaction, you may be required to either produce a tax form (such as a 3921 or 1099) or report the employee’s taxable income on form W2.
  • Coordinating with payroll will ensure accuracy and create transparency with your employees.
  • Creating a standardized process now will benefit you and your team year over year.
  • Understand the benefits of leveraging the Shareworks participant experience to clearly display any taxes owed at the time of the transaction,
  • Understand how to leverage Shareworks to generate and disseminate year-end 3921 forms to employees as well as create the file that will be uploaded on the IRS FIRE site.

What can you do this fall to prepare for year-end tax reporting?

  • If filing electronically for the first time, obtain a Transmitter Control Code (TCC) from the IRS. To get a TCC number assigned to your business, you’ll need to complete Form 4419, Application for Filing Information Returns Electronically. This form can be downloaded or completed online on the IRS website:
  • Create a FIRE account with the IRS here: In Shareworks, at year-end you will be able to create the file in the proper format per the requirements and record layouts for easy upload to the IRS FIRE system.
  • Home address and SSN are required fields on form 3921, so make sure this demographic information is populated in the Shareworks Stakeholder account for each participant who exercised an ISO in 2019.
  • If you’ve completed a 409A Valuation in 2019, ensure the Fair Market Value (FMV) on the date of exercise matches the correct.
  • Register for an account with the Shareworks Academy for additional resources and information.


NOTE: Shareworks provides a substitute statement for Form 3921, which meets the requirements of IRS Publication 1179.

About the Author

Hannah Bloomfield

Hannah Bloomfield started as a content marketing manager with Shareworks Startup Edition. Her experience with equity compensation stems from direct interviews and research with top experts from Shareworks by Morgan Stanley. She has since moved into a marketing program role working directly with our Global Private Market team to bring the most recent and relevant information on equity to the world's top private companies.

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