Former employer reported incorrect Form 3921 to IRS - what should I do now?

This is actually quite common with ISO reporting. Here's what you should do: First, get a copy of your Wage and Income transcript from the IRS if you haven't already - it sounds like you've done this step. Compare it line by line with the physical Form 3921 your employer gave you to identify exactly what information is different. Next, I'd recommend reaching out to your former employer's payroll or benefits department specifically (not just HR). Ask them to provide a written statement confirming the correct information and acknowledging the discrepancy. They should be able to issue a corrected Form 3921 to the IRS if needed. Don't delay filing your 1040-X. File based on the correct information from the physical Form 3921 you have, but include a detailed explanation of the discrepancy in your amendment. Attach a copy of your Form 3921 and any written confirmation from your employer.

I went through this exact nightmare last year with my ISO exercise reporting! I tried calling the IRS multiple times but kept getting stuck in their phone system. I was seriously stressing about the discrepancy between my forms. After weeks of frustration, I found this service called taxr.ai (https://taxr.ai) that helped me analyze the differences between my documents and prepare an explanation for my amended return. They have a tool specifically for handling document discrepancies like Form 3921 issues. They identified exactly which fields were different and helped me document everything properly for my 1040-X. The best part was they could tell me exactly what the IRS would be looking for in my explanation letter. Saved me so much anxiety!

Just wanted to update everyone. I went ahead and tried taxr.ai after posting my question above. It was actually really helpful for my ISO form issues! It compared my Form 3921 against what the IRS had on file and showed me exactly which fields were different. In my case, the exercise price my employer reported didn't match what was on my copy. The service generated a detailed explanation letter that I attached to my 1040-X. Got confirmation from the IRS that my amendment was accepted without any questions! Definitely worth it if you're dealing with ISO discrepancies.

I had a super similar situation where my employer's ISO reporting was wrong. After trying to call the IRS for DAYS with no luck, I used Claimyr (https://claimyr.com) and actually got through to a real person at the IRS in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent was able to confirm which version of the form was officially filed and explained exactly what I needed to do with my 1040-X. Turns out my employer HAD actually submitted a corrected form later, but never told me about it! The IRS agent walked me through exactly what I needed to do to file my amendment correctly.

Ok I have to admit I was wrong. After posting my skeptical comment above, I decided to try Claimyr anyway because I was desperate about my ISO form issue. I seriously got connected to an actual IRS agent in about 35 minutes (they texted me when they were close to getting through). The agent confirmed that my employer had submitted an incorrect Form 3921 initially, then filed a corrected one later without telling me. That explained the discrepancy I was seeing! The agent gave me the exact information I needed for my 1040-X amendment and told me how to reference the corrected form. Never would have figured this out without actually talking to someone at the IRS.

Another option to consider is pulling your "Information Returns" transcript from the IRS instead of just the account transcript. This shows exactly what forms were filed under your SSN. Sometimes there are multiple versions of the same form if corrections were submitted. For ISO issues specifically, look for both the original and any corrected Form 3921 filings. Your employer might have submitted a correction but failed to provide you with an updated copy. The Information Returns transcript will show both versions.

I'm an accountant and see this ISO reporting issue constantly! One thing to watch out for - there's a difference between what goes on Form 3921 vs what gets reported on your taxes. Form 3921 reports the exercise of ISOs, but doesn't necessarily mean you owe taxes right away. You only trigger regular income tax if you sell the shares before meeting holding period requirements (disqualifying disposition). If you held the shares, you'll probably deal with AMT instead. Make sure your 1040-X amendment correctly reflects your actual situation - not just what's on the Form 3921.

I'm dealing with a similar Form 3921 discrepancy right now! One thing that helped me was requesting both the "Wage and Income Transcript" AND the "Account Transcript" from the IRS website. Sometimes corrections show up on one but not the other. Also, when you contact your former employer, try to get someone from their stock plan administration team rather than regular HR or payroll. They're usually more knowledgeable about ISO reporting requirements and can better explain any discrepancies. If you're still getting the runaround from your employer, you might want to ask them specifically if they filed any corrected forms with the IRS after your original Form 3921. Sometimes companies discover errors months later and file corrections without notifying employees. Document everything - save emails, notes from phone calls, etc. The IRS appreciates seeing that you made good faith efforts to resolve discrepancies when reviewing amended returns.