Section 83(b) Election Form 15620

Section 83(b) Election Form 15620 (Rev. April 2025) is the official IRS form used by taxpayers who receive substantially nonvested property—such as restricted stock, equity, or other compensation—in connection with the performance of services. Under Internal Revenue Code § 83(b), a person can elect to include the value of that property in gross income immediately instead of waiting until it vests.

Why does this matter? Because by filing Form 15620, you can potentially lock in a lower taxable value when the property’s fair market value (FMV) is smaller, reducing your future tax burden if the property appreciates. Once filed, this election is irrevocable except with IRS consent, so it’s critical to complete it accurately and submit it on time—within 30 days of the property’s transfer.

The form also serves to document the property’s description, FMV, amount paid, and restrictions, ensuring proper compliance under § 83 and Treasury Regulations 1.83-2 through 1.83-3.

How To File Form 15620

1. Timing:
   File Form 15620 within 30 days after the date the property is transferred to you. If that date falls on a weekend or holiday, the next business day counts.
2. Where To File:
   Mail the completed and signed form to the same IRS office where you file your federal income tax return.
3. Copies To Provide:
   • Send a copy to the company or person for whom you performed the services.
   • If you are not the transferee of the property, also send a copy to the transferee.
   • Keep a copy for your records.
4. Revocation:
   You generally cannot revoke this election once made, except with IRS consent.

How to Complete Section 83(b) Election Form 15620

Box 1 – Taxpayer’s Name, TIN, and Address

Enter your full legal name, taxpayer identification number (Social Security Number or EIN), and current mailing address, including street, city, state, ZIP code, and country if outside the U.S.

Box 2 – Description of Property

Describe precisely the property you received. Include type and quantity.
Example: “1,000 shares of Class A common stock of XYZ Corporation.”
If you received other types of property (like partnership units), describe them clearly.

Box 3 – Date the Property Is Transferred

Enter the exact date when the property was legally transferred to you—typically the grant date or when ownership rights began.

Box 4 – Taxable Year for Which the Election Is Made

Enter the taxable year that includes the transfer date from Box 3, e.g., “Calendar Year 2025.” This determines which year’s income the property value will be reported in.

Box 5 – Description of Applicable Restrictions

List the restrictions that make the property “substantially nonvested.”
Example: “Shares will be forfeited if employment with XYZ Corporation terminates before April 1, 2027.”
Be specific—include forfeiture conditions, vesting schedules, or performance clauses.

Box 6 – Fair Market Value of the Property at Time of Transfer

• (a) Enter the fair market value (FMV) per item at the transfer date.
• (b) Enter the quantity of items received.
• (c) Multiply (a) × (b) to get the total FMV.
  Remember: Determine FMV without regard to any lapse restriction (temporary limits that expire).

Box 7 – Amount Paid for the Property

• (a) Enter the price paid per item, if any.
• (b) Enter the quantity again.
• (c) Multiply (a) × (b) to get the total price paid.
  If the property was granted for free, enter $0.

Box 8 – Amount to Include in Gross Income

Subtract the total in Box 7(c) from Box 6(c).
Box 8 = Box 6(c) – Box 7(c).
This is the amount you’ll include in your gross income for the taxable year listed in Box 4.

Box 9 – Name, TIN, and Address of Service Recipient (Optional)

You may enter the name, TIN, and address of the employer or client for whom you performed the services connected with the property transfer. This field is optional and does not affect the validity of your election.

Signature and Date

Sign and date the form. The IRS requires your signature under penalty of perjury, affirming that all information is true, correct, and complete.

After Filing

• Keep a copy for your tax records.
• Send copies to the employer and transferee (if applicable).
• Attach nothing else unless specifically required by your tax advisor or the IRS.

Important Notes

• The election window (30 days) is strict—no extensions.
• Once made, the election is binding unless revoked by IRS consent under Treas. Reg. 1.83-2(f).
• If your property later becomes worthless, you cannot recover the tax you paid under this election.