• IRS Issues Sample Code § 83(b) Election Form
  • October 10, 2012 | Author: Barry L. Salkin
  • Law Firm: Olshan Frome Wolosky LLP - New York Office
  • Section 83(a) of the Internal Revenue Code (the “Code”) provides generally that if, in connection with the performance of services, property is transferred to a service provider, the excess of the fair market value of the property so transferred (determined without regard to any restriction other than a restriction which by its terms will never lapse) as of the first time that the service provider’s rights in the property are vested, i.e., transferable or not subject to a substantial risk of forfeiture, whichever occurs earlier, over the amount (if any) paid for the property is included in the service provider’s gross income for the taxable year in which vesting occurs. Income attributable to property that is not vested upon grant is included in income when the property vests (i.e., is either transferable or no longer subject to a substantial risk of forfeiture).