"Q1) What forms are necessary for me to report AMT on this? How do I obtain these forms?"
The AMT adjustment goes on Form 6251. As to how to "obtain" Form 6251, in the TurboTax online products TurboTax Deluxe and above say they support that form.
"Q2) Is company X required by law to furnish Form 3921?"
Pretty much, though there are exceptions:
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Who Must File
Every corporation which in any calendar year transfers to any person a share of stock pursuant to that person's exercise of an incentive stock option described in section 422(b) must, for that calendar year, file Form 3921 for each transfer made during that year.
Exception. A Form 3921 is not required for the exercise of an incentive stock option by an employee who is a nonresident alien (as defined in section 7701(b)) and to whom the corporation is not required to provide a Form W-2, Wage and Tax Statement, for any calendar year within the time period beginning with the first day of the calendar year in which the option was granted to the employee and ending on the last day of the calendar year in which the employee exercised the option. For this purpose, the term “corporation” is defined in section 7701(a) and includes, but is not limited to:
- The corporation issuing the stock
- A related corporation of the corporation,
- Any agent of the corporation,
- Any party distributing shares of stock or other payments in connection with the plan (for example, a brokerage firm), and
- Any party in control of the payment of remuneration for employment to the employee
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"Q3) What other info do I need from 'X'? I cannot seem to understand how to obtain FMV on the exercise date?"
As to "what's needed", Form 3921 spells that out. Management certainly is obliged to provide a FMV at grant date which cannot be more than the exercise price, otherwise it can't be considered an ISO. Also private
companies are required to use a reasonable valuation method to
determine the value of their stock as of the date of exercise as a disqualifying sale results in W-2 income.
Tom Young
