Tax reporting of ISOs that were early exercised and later vested in the same year

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Atrium3636
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Joined: Sat Mar 04, 2023 3:46 pm

Tax reporting of ISOs that were early exercised and later vested in the same year

Post by Atrium3636 »

Hi everyone,

I'm trying to figure out how to report AMT on my tax return. Here's the background:
* I early exercised my ISOs in 2022.
* I did not make an election under Section 83(b).
* The exercised stocks vested later in 2022.

My understanding is that since I didn't make the 83b election, my AMT adjustment is the difference between the FMV on the vesting date and the amount I paid to exercise. And this goes on Line 2i of Form 6251. My employer provided the Form 3921, which lists the FMV on the exercise date. But I haven't received any document detailing what the FMV was on the vesting date. So I have 3 questions:
1) Should I have received another document that lists the FMV on the vesting date?
2) If not, the amount on Line 2i of Form 6251 won't match the info from Form 3921. How would the IRS verify that the AMT adjustments were calculated correctly?
3) In case I get audited, what document should be provided to IRS to prove Line 2i on Form 6251 was correct?

Thanks!
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