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.