Founders, executives and other employees of fast growing
companies – if you received or are about to receive
restricted stock in connection with the performances of services,
you should consider making a timely § 83(b) election in the
US, even if you are not currently taxed in the US.
Generally, if stock is transferred in connection with the
performances of services, the person performing such services may
elect, for US federal income tax purposes, to include in gross
income the fair market value of the property (less the amount paid
for the stock, if any) at the time of transfer as compensation for
services. If this election is made, the rules in the US that
generally would require recognition of income when vesting occurs,
would not apply. As a result, subsequent appreciation in the value
of the stock between the time of its grant and the time when it
vests is not taxable as compensation to the person who performed
the services.
