IRS will no longer require additional Sec. 83(b) election statement with return


To facilitate e-filing, the IRS proposed to amend Regs. Sec. 1.83-2(c) to eliminate its requirement that taxpayers making a Sec. 83(b) election file a copy of the election statement with their tax return for the year of the transfer of property for which the election is made (REG-135524-14).

Under Sec. 83(b)(2), taxpayers making the election must also file a written statement of the election within 30 days after the property transfer. The IRS stated in a preamble that IRS personnel electronically scan these statements, which eliminates the need for an additional submission of it with a tax return. Moreover, because commercial tax preparation software does not always allow electronic submission of a Sec. 83(b) election statement with a tax return, taxpayers have been unable to electronically file their return in such instances.

The proposed effective date of the change is Jan. 1, 2016, but taxpayers may rely upon the proposed regulation for property transferred on or after Jan. 1, 2015.

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.

SPONSORED REPORT

Getting leases in line

ASC Topic 842 is a relatively simple standard that can mean profound changes for organizations with leases. This report examines what makes this standard challenging and describes new ways for CPAs to add value.