"This article provides a reminder of the annual reporting requirements for an incentive stock option (?ISO?) and an employee stock purchase plan (?ESPP?) under section 6039 of the Internal Revenue Code of 1986 (?Code?). Employers that grant ISOs or stock purchase rights under ESPPs are required to distribute special notices to employees in certain circumstances under section 6039 of the Code. The reporting requirement is not a new one and is separate from the IRS Form W-2 reporting requirement that applies to taxable wages. The primary purpose of the special notice is to provide employees with information to calculate the possible alternative minimum tax (?AMT?) that may apply on the exercise of an ISO and the ordinary income tax that may apply on the sale or transfer of employer stock purchased under an ESPP.