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November 11, 2024
2024-2073

IRS creates IRC Section 83(b) election form

The IRS has created a new form for taxpayers to claim an IRC Section 83(b) election, which allows taxpayers receiving unvested property in connection with the performance of services to elect taxation upon transfer rather than vesting. Form 15620, Section 83(b) Election, was posted on the IRS website on November 7, 2024. It is available for immediate use, although taxpayers are not required to use it. Like taxpayer-created elections, it can be signed electronically.

An IRC Section 83(b) election, which is generally irrevocable, must be made no later than 30 days following the transfer date. Historically, there was no IRS form for making this election — tax professionals typically drafted the election themselves using the relevant text from Treas. Reg. Section 1.83-2 or Revenue Procedure 2012-29 and submitted it by mail.

Electronic filing is expected to be available in the future, but only if taxpayers use Form 15620. In the meantime, Form 15620 must be filed by mail, consistent with existing IRC Section 83(b) filing procedures.

Implications

For some taxpayers, Form 15620 will be an appealing way to make IRC Section 83(b) elections regardless of whether it can be filed electronically. Other taxpayers might find the form more helpful when it can be filed electronically.

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Contact Information

For additional information concerning this Alert, please contact:

Compensation and Benefits Group

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor
 

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