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§ 83(b) Election Form




This § 83(b) election form has been established and is being maintained as part of the Tax Page, a demonstration World Wide Web project. Comments are welcome on the design or content of this form.

Under § 83(b) an election can be made to recognize income currently upon the transfer of "restricted" property in connection with the performance of services. You can prepare a § 83(b) election by completing the form at the end of this document which follows some general rules regarding the election. Click on the Prepare Form button at the end of the form to submit it or on the Clear Entries button to start over.

If your browser permits, you may wish to save the resulting election as a text file for subsequent editing.

The decision as to whether to make a § 83(b) election has serious tax consequences; you are strongly urged to consult a tax professional with regard to both the availability and advisability of the election.

  • A § 83(b) election must be filed not later than 30 days following the transfer of property. Income Tax Regs. § 1.83-2(b).

  • The § 83(b) election is filed with the internal revenue office with which the person rendering the services files his or her income tax return; a copy of the election must be included with that person's income tax return for the taxable year in which the property is transferred. Income Tax Regs. § 1.83-2(c).

  • The person rendering the services must provide a copy of the § 83(b) election to the person for whom the services are rendered and to the person to whom the property is transferred, if that person is not the person rendering the services. Income Tax Regs. § 1.83-2(d).

  • A § 83(b) election may be revoked only with the consent of the Internal Revenue Service; that consent will be given only in very limited circumstances. Income Tax Regs. § 1.83-2(f).

  • Requirements under state or local income tax laws vary. For example, in some states the filing of a § 83(b) election with the Internal Revenue Service constitutes the making of the election under comparable state provisions, while in other states a separate state election is required. You are also urged to consult a tax professional regarding state or local tax implications.

  1. Taxpayer Information:

    Name

    Street Address

    City, State, Zip Code (or equivalent)

    Country (if not U.S.)

    Social Security Number

  2. Tax Year of Election. For example, "Calendar year 1995" or "Fiscal year ending June 30, 1995."

  3. Description of Property. For example, "1,000 shares of XYZ Corp. common stock."

  4. Date of Property Transfer. Permissible formats: April 15, 1995, 4/15/95, 4/15/1995, 4-15-95, 4-15-1995 (two digit years are assumed to be in the 1900s).

  5. Nature of Property Restrictions. For example, "The shares are subject to repurchase at cost upon termination of employment."

  6. Property's Fair Market Value at the Time of Transfer (determined without regard to any lapse restrictions as defined in Income Tax Regs. § 1.83-3(i))

  7. Amount Paid for Property

   

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