Expands Tax Filing Guidance for Equity Compensation Plan Participants

Recent tax changes make IRS filings for recipients of stock compensation more confusing.

With the multitude of recent tax changes, the 2019 tax season presents more potential than ever for confusion and expensive mistakes in IRS filings for all taxpayers, especially the millions of employees in the United States who received income in 2018 from stock compensation and/or related stock sales, according to

The firm has updated its Tax Center to provide answers about the filing and reporting of tax returns that involve stock options, restricted stock, restricted stock units, performance shares, stock appreciation rights, and employee stock purchase plans:

  • Core articles and FAQs spell out the most common mistakes people make with stock grants on their tax returns. Taxpayers, their financial advisers, and their accountants can quickly run through these to be sure they submit error-free returns. A special FAQ this tax season sets forth the top 10 questions that taxpayers should ask about the reporting of stock sales on their tax returns.
  • The reporting of stock sales is made clear with annotated how-to diagrams of IRS tax-return forms.
  • Diagrams of Form W-2, Form 3922 (for employee stock purchase plans), and Form 3921 (for incentive stock options) show how companies report equity compensation income to employees.
  • Animated videos include a succinct tutorial on key IRS tax forms related to stock-sale reporting and a video guide to avoiding costly mistakes that can lead to the overpayment of taxes.
  • Podcasts convey tips for tax returns.
  • A fun interactive quiz on tax-return topics lets users test their reporting knowledge in a painless way, before they file their returns, and links to related content from the answer key.
“The tax reporting for stock compensation is complex,” says Bruce Brumberg, editor-in-chief of “The changes for 2019 expand what you must understand before you prepare your tax return. Even accountants and tax advisors sometimes make mistakes. Our goal is to help employees and their financial or tax advisors realize the full potential of equity compensation by educating them about tax rules and helping them prevent costly errors. The last thing taxpayers want is to pay too much tax or incur IRS penalties that take yet more money out of their pockets.”