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IRC Section 83(b)

Kilpatrick

IRS (Permanently) Allows Digital Signatures for Section 83(b) Elections

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Good news ­– the IRS announced that it will allow taxpayers to make and file Section 83(b) elections with a digital signature. This decision makes permanent a practice that the IRS temporarily allowed during the COVID-19...more

Morrison & Foerster LLP

What Is an 83(b) Election, and Do I Need to File One?

If you’re reading this, chances are this is not the first time you’ve heard of the 83(b) election (and if it is, then definitely keep reading). The “83” in “83(b) election” refers to Section 83 of the Internal Revenue Code,...more

Bowditch & Dewey

Starting a Start-Up? Here’s One More Thing You Need to Know: The 83(b) Election

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Many people are forming start-up entities, especially in the Boston and Worcester areas, and for some, it becomes a great success story. For others, it does not. As an attorney who assists many start-ups and investors, I see...more

WilmerHale

Commonly Considered Option Program Enhancements: Part II - Early Exercisable Stock Options

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In the first part of this four-part series, we provided a high-level summary of stock option basics. In this second installment, we build on those basics and begin our exploration of stock option program “enhancements” by...more

Foley & Lardner LLP

Common Diligence Issues for Startup and Emerging Technology Companies

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As an emerging or startup technology company seeking funding, your focus is likely on your product - it is the core of your business. That being said, how you protect your technology and set up the company that owns it can be...more

Cooley LLP

What is a Section 83(b) Election and Why Should You File One?

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Update: on April 15, 2021, the Internal Revenue Service announced that it would temporarily (through December 31, 2021) allow Section 83(b) elections to be signed digitally or electronically, instead of requiring handwritten...more

Holland & Hart - The Benefits Dial

What About Now? – 83(b) Tax Rules Applicable to Early Exercise of Stock Options

Some years ago, I published an article on the importance of understanding the tax rules applicable to equity grants, with a particular focus on being aware of the timing rules for filing an 83(b) election and the importance...more

Perkins Coie

IRS Temporarily Permits E-signature of 83(b) Elections

Perkins Coie on

On April 15, 2021, in response to the ongoing COVID-19 situation, the U.S. Internal Revenue Service (IRS) issued a temporary deviation from the handwritten signature requirement for a limited list of tax forms, including...more

Bass, Berry & Sims PLC

Key Considerations for Emerging Companies: Equity Compensation

Equity compensation – which links the self-interests of a company’s service providers with the interests of the company and its investors – is a compelling incentive for start-up companies to attract and motivate employees...more

Davis Wright Tremaine LLP

What Is an 83(b) Election and Why Should Startup Founders Care?

A Section 83(b) election is a short, generally one-page document you send to the IRS to notify them that you wish to be taxed in connection with property subject to a "substantial risk of forfeiture" (more on this below) that...more

Farrell Fritz, P.C.

Compensating Management With Equity In the Post-COVID World

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Business is back . . . Sort of- As the country begins its hoped-for recovery from the disruptive economic effects of the COVID-19 virus – or, more accurately, from the measures implemented by government to contain the...more

Goodwin

U.S. Internal Revenue Service Issues Temporary Filing Extension for Section 83(b) Elections

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In response to the COVID-19 pandemic, the U.S. Internal Revenue Service (“IRS”) issued Notice 2020-23, 2020-18 IRB 732 (April 27, 2020) (the “Notice”) providing a temporary extension, until July 15, 2020, for Internal Revenue...more

Williams Mullen

Section 83(b) Elections: Limited COVID-19 Relief, but Keep Your Records

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A limited extension, until July 15, 2020, is available for Internal Revenue Code (“Code”) Section 83(b) elections otherwise due on or after April 1, 2020, and before July 15, 2020. It will be especially important for...more

Cooley LLP

Alert: Section 83(b) Election Deadline Extended to July 15, 2020

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In response to the COVID-19 pandemic, the IRS recently issued Notice 2020-23 to extend the deadline to July 15, 2020, for any Internal Revenue Code Section 83(b) election that would otherwise have been due on or after April...more

Ballard Spahr LLP

Federal Agencies Postpone Deadlines for Employee Benefit Plan Matters

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The Internal Revenue Service has issued Notice 2020-23, which automatically postpones certain deadlines affecting employee benefit plans. Specifically, any deadline that would ordinarily fall on or after April 1, 2020,...more

Cooley LLP

Blog: Early Exercisable Stock Options: What You Need to Know

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What is an early exercisable stock option? An “early exercisable” stock option is like any other stock option awarded to an employee, consultant, director or other advisor, except that the holder may exercise the option...more

Foley & Lardner LLP

Equity Compensation and the Rise of Restricted Stock Units

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In recent years, equity compensation programs have increasingly been using restricted stock units (RSUs). A manufacturing company recently made news when it granted RSUs worth millions of dollars to thousands of its employees...more

White and Williams LLP

New IRC Section 83(i) Introduces Election to Defer Tax on Certain Stock Options and RSUs

An election introduced as part of the 2017 Tax Cuts and Jobs Act allows taxpayers to defer the recognition of taxable income with respect to certain categories of compensatory stock options and restricted stock units (RSUs)....more

WilmerHale

Tax Act: New Opportunity to Defer Income from Certain Private Company Equity Grants

WilmerHale on

The new Section 83(i) of the tax code, enacted as part of the Tax Act, allows certain private company employees to elect to defer, solely for income tax purposes and for a period of up to five years, the income attributable...more

Bradley Arant Boult Cummings LLP

New Deferral Opportunity for Stock Awards

The Tax Cuts and Jobs Act includes a new provision that can delay the taxation of compensation paid to employees of “eligible corporations” in the form of “qualified stock” for up to five years. The provision is set forth in...more

Cole Schotz

Section 83(b) Elections Add Value To Equity Grants

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Contractors, advisers, and employees (collectively, “Service Providers”) who receive property that is non-transferrable or subject to a substantial risk of forfeiture must generally defer their income recognition until those...more

Dickinson Wright

IRS Relaxes Section 83(b) Filing Requirements

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A taxpayer who makes a Section 83(b) election to accelerate the income taxation date of certain transferred property is no longer required to file a copy of the Section 83(b) election with his or her tax return for the year...more

Miles & Stockbridge P.C.

Demystifying Phantom Equity

Phantom equity is a colorful term for a simple concept: compensation that rewards key contributors for increasing the value of the company without the immediate issuance (or even any future issuance) of equity securities....more

Snell & Wilmer

IRS Finalizes Regulations Simplifying 83(b) Filing Requirements

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On July 23rd of last year, I blogged on a set of proposed regulations eliminating the requirement that a taxpayer attach a copy of his or her Section 83(b) election to their individual tax return. This July, the IRS made the...more

Morrison & Foerster LLP

IRS Simplifies Section 83(b) Election Process

Under Section 83(b) of the Internal Revenue Code ("Section 83(b)"), a taxpayer who receives certain property subject to vesting as compensation for services (for example, a restricted stock award granted by the taxpayer's...more

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