On November 7th, 2024, the Internal Revenue Service (IRS) introduced Form 15620 for Section 83(b) elections. This is the first time the IRS has provided a standardized form for making an 83(b) election.

Previously, taxpayers were required to draft their own statement in compliance with Treasury Regulation § 1.83-2. Taxpayers may now choose to use the IRS-approved form.

Section 83(b) elections are often considered by taxpayers who receive restricted property, such as stock or partnership interest, in connection with the performance of services. The taxpayer may elect to include the property's value in their gross income rather than waiting for the property to vest. Founders and employees of start-ups may find an 83(b) election advantageous if they received stocks subject to vesting schedules.

Taxpayers must make a section 83(b) election within thirty days of receiving the property. As was the case before the release of form 15620, taxpayers must mail the completed and signed form to the IRS.

If you want to learn more about 83(b) elections and how they may impact your tax situation, please contact KBL Roche for additional information.

By George Galan