Articles

July 20, 2015

Section 83(b) Election No Longer Required to be Submitted with Return

The IRS has issued proposed regulations eliminating the requirement that taxpayers submit a copy of a Section 83(b) election with their tax returns for the year the property was transferred. This election, which must be submitted to the IRS within 30 days of the date of transfer, allows taxpayers to choose to report income in the year nonvested property from the performance of services is received, rather than the year when the property substantially vests. Eliminating the need to attach a copy of the election to the taxpayer's return will promote e-filing of tax returns. The proposed regs. will apply to property transfers on or after 1/1/16, but may be relied upon for property transferred on or after 1/1/15. Comments on the proposed rules are due by 10/15/15. Prop. Reg. 1.83-2.