Interested in training for your team? Click here to learn more

IRC Section 83(b) Election for Restricted Property: New Form 15620, Advantages and Risks of Making the Election

A live 110-minute CPE webinar with interactive Q&A

This program is included with the Strafford CPE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Monday, May 26, 2025

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, May 9, 2025

or call 1-800-926-7926
Add to your calendar

This webinar will outline the advantages and risks of making an IRC Section 83(b) election. Our panel of federal income taxation professionals will point out scenarios when the election is advantageous, the caveats of making the election that a service provider must consider, and review the steps for completing and submitting new Form 15620, Section 83(b) Election.

Description

Paying service providers with equity can benefit companies and service providers. Service providers receive an asset that, hopefully, appreciates, while employers can offer a powerful incentive for service providers to remain with the company. Usually, compensation is taxed when received at ordinary income rates. Since restricted property is forfeitable and not transferrable, it is generally not taxed until the restrictions are satisfied or the property becomes transferrable.

An election under IRC Section 83(b) allows a service provider to pay tax on the restricted property received based on its value on the date it is granted rather than the date it is vested. This allows the recipient to pay tax upon a sale of the property at capital gains rates (subject to satisfying certain holding period requirements) rather than ordinary rates on the appreciation that takes place between the grant date and vesting date. The tax savings can be substantial.

The IRS recently released new Form 15620, 83(b) Election. The new form allows taxpayers to file an election without constructing an eligible election that meets Section 83(b) requirements. The form is not yet available to file electronically.

Tax advisers, employers, and service providers of businesses considering or making equity grants need to understand the details of Section 83(b) elections to reap the tax savings.

Listen as our panel of tax, compensation, and benefits experts reviews the nuances of Section 83(b) elections, including the preparation of the new Form 15620.

READ MORE

Outline

  1. IRC Section 83(b): introduction
  2. Eligibility
  3. Taxation of restricted property
  4. Company considerations
  5. Service provider considerations
  6. S corporation considerations
  7. Profits interests; protective Section 83(b) elections
  8. New Form 15620, Section 83(b) Elections
  9. Missed elections
  10. Examples

Benefits

The panel will cover these and other critical issues:

  • When is it beneficial to file a Section 83(b) election?
  • Filing new Form 15620, Section 83(b) Election
  • How is the tax calculated when restricted property is granted and a Section 83(b) election is in place? What are the tax consequences upon vesting?
  • How is the tax calculated upon vesting of restricted property where a Section 83(b) election is not in place?
  • How is a missed Section 83(b) election rectified?

Faculty

Wilkinson, TJ
TJ Wilkinson
Shareholder
Shulman Rogers

Mr. Wilkinson provides clients with insight into the income tax implications of their business transactions and helps...  |  Read More

Attend on May 26

Early Discount (through 05/09/25)

CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend May 26?

Early Discount (through 05/09/25)

CPE credit is not available on downloads.

CPE On-Demand

See NASBA details.