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IRS Issues Model Language for Making a Section 83(b) Election
Practical Law Legal Update 0-520-0739 (Approx. 3 pages)
IRS Issues Model Language for Making a Section 83(b) Election
by PLC Employee Benefits & Executive Compensation
| Published on 26 Jun 2012 • USA (National/Federal) |
The Internal Revenue Service (IRS) issued Revenue Procedure 2012-29, effective June 25, 2012, which provides sample language that taxpayers may use to make an election under Section 83(b) of the Internal Revenue Code (IRC) and examples of the income tax consequences of making a Section 83(b) election in various situations.
The IRS has issued Revenue Procedure 2012-29. This revenue procedure contains:
- Sample language that may be used (but is not required to be used) for making an election under IRC Section 83(b).
- Examples of the income tax consequences of making a Section 83(b) election in various situations.
For an overview of the IRC Sections applicable to equity compensation, including IRC Section 83, see Practice Note, Overview of the Taxation of Equity Compensation Awards: Internal Revenue Code Sections Applicable to Equity Compensation. For a model Section 83(b) election form including integrated notes with important explanations and drafting tips, see Standard Document, Internal Revenue Code Section 83(b) Election.