IRS SIMPLIFIES SECTION 83 ELECTION PROCEDURES

In a recent private letter ruling, IRS acknowledged that the failure to attach a copy of a Section 83(b) election to the tax return didn’t negate the election as long as the election was, in fact, filed with IRS within 30 days of the date of transfer, which has long been the rule.

And in recently proposed regulations, IRS has further formalized this new stance in proposing elimination of the requirement that taxpayers attach a copy of the election to the tax return. For one thing, IRS believes this bit of simplification (applicable to property transfers on or after January 1, 2016) will promote the e-filing of tax returns.