Hello,

I just received form 3921 for a client. She has ISO but has not sold it. It's "Exercise and Hold".  Does this need to be reported on Form 6251 even though it's not sold yet? 

Because when I input the difference between Exercise price and FMW, it's a high AMT tax.

Also later, when she sells, it will be reported on her W2 but does she have to make sure to let them know she has paid the AMT tax so that it's disqualifying, correct?

Last question, if she later sells some but not all, how will she get the AMT tax she prepaid? How do I allocate, all or partial?

Thank you so much. I even asked a colleague who's been doing taxes for over 20 and have never encountered an ISO.