Watch for New Form 15620 (Section 83(b) Election) on Your Equity Awards

The IRS has released a new form for making Section 83(b) elections.  A Section 83(b) election allows taxpayers who receive property that is subject to vesting (such as stock or equity compensation) to include that property in income when it is received, rather than when it vests.  First, note that the form is optional and taxpayers can continue to use substitute forms as in the past.  The new Form 15620 aims to standardize the election to reduce the likelihood of errors.  The form does not change the 30-day deadline to make the election (which begins to run on the date the property is received).  Missing the deadline can lead to higher tax liability in the future, when the property eventually vests.  Because the 83(b) election form is often attached to an executive compensation equity award, many employers may wish to switch from their prior forms to the new, more streamlined form.  For more information on Section 83(b) elections, visit Tax Facts Online. Read More: Link to Q3618.  Note: Q is updated.