The IRS recently adopted final regulations that eliminate the
requirement that taxpayers who have made an election under Code
Section 83(b) with respect to receipt of restricted property file a
copy of that election with their federal income tax return for the
year the property was transferred. However, the requirement
that a copy of such election be filed with the IRS within 30 days
of transfer of restricted property continues to apply.
Under Code Section 83, if property (e.g., stock, LLC
interests, partnership interests) is transferred to a service
provider (e.g., employee, director, consultant) and that
property is restricted for purposes of Code Section 83
(i.e., it is both subject to a substantial risk of
forfeiture and non-transferrable), then, unless a timely Code
Section 83(b) election, the fair market value of that property
(less any amount paid for the property) at the time of vesting will
be taxed as compensation income to the service recipient at the
time
