IRS Creates A Standardized Section 83(b) Election Form

On November 7, 2024, the U.S. Internal Revenue Service (the IRS) released Form 15620,¹ which standardizes elections under section 83(b) of the Internal Revenue Code of 1986, as amended (the "Code," and such elections, "Section 83(b) Elections") for taxpayers to accelerate taxation upon the receipt of unvested property received in connection with the performance of services.

The IRS has historically required taxpayers to make a Section 83(b) Election by submitting a self-drafted letter that followed the guidelines outlined in IRS Revenue Procedure 2012-29² or section 1.83-2 of the Treasury regulations. This approach carried the risk of an invalid Section 83(b) Election due to the potential omission of required information. While taxpayers may still file Section 83(b) Elections using self-drafted letters, Form 15620, which now reduces the risk of errors, standardizes Section 83(b) Elections.