The Internal Revenue Service (“IRS”) announced a new electronic filing platform for Form 15620 to make an election pursuant to Section 83(b) of the Tax Code. 83(b) elections allow a taxpayer who receives equity compensation in a business that is subject to a substantial risk of forfeiture, such as a vesting agreement, to claim the value of the equity as income in the year of receipt. This allows taxpayers to enjoy capital gain rates on any appreciation.
The new system will make it easier for taxpayers to submit the election and confirm compliance with the 30-day filing requirement. Taxpayers must create an IRS online account to file Form 15620 through the IRS website. Upon filing, taxpayers must also provide a copy of the filing to his or her employer or issuer. For further questions regarding the new filing method, contact Liskow attorneys Leon Rittenberg III, Caroline Lafourcade, John Rouchell, and Kevin Naccari and visit our Tax practice page.