New IRS Form for Making a Sec. 83(b) Election

When an employee receives nonvested property in connection with the performance of services (e.g., restricted stock), instead of waiting to report income when vested or restrictions are gone, there’s another option: Make a Sec. 83(b) election to report income when the property is received. The income to report is the value of the property at the time of receipt less anything paid for it. The value at this time may be minimal, or least probably less than what it may be worth in the future. This election must be done within 30 days of receiving the property. The IRS created Form 15620 for making the election. Note: The election is irrevocable unless the IRS consents to it. #IdeaoftheDay