Online Filing Now Available for Section 83(b) Elections
The IRS has launched a major modernization of the Section 83(b) election process. In November 2024, the IRS introduced Form 15620, designed to standardize Section 83(b) elections. Previously, taxpayers had to draft their own written statement that met the informational requirements for making a Section 83(b) election. In mid-2025, the IRS took the next step by enabling taxpayers to electronically file Form 15620 via the IRS website using an IRS online account and ID.me authentication. While traditional mailing remains an option, online submission is now the IRS’s preferred method.
New Streamlined Process
To file online, taxpayers must log into their IRS account through ID.me. Creating an ID.me account currently requires submission of a photo of a government-issued ID and a video selfie to verify that you match the ID. Taxpayers must then complete Form 15620 directly on the site and submit it electronically. Upon submission, the system provides immediate confirmation of receipt and taxpayers can download a copy of the filed form for their records. The filed form should also be shared with their employer or issuer of the restricted property (in typical cases, the restricted property is equity subject to vesting). Importantly, regardless of the filing method, taxpayers must adhere to the strict 30-day deadline from the time of transfer of the restricted property to file the election.
Taxpayers should file only one way (either online or by mail) and should retain copies for both IRS compliance and employer reporting.
Implications for Clients
This digital option has the potential to significantly reduce the frequency of missed filings. It simplifies the often-rushed logistics of Section 83(b) elections, reducing reliance on certified mail, return receipts, physical documentation and lawyers or accountants to help with the process. Note, however, that Form 15620 is executed under penalties of perjury, which is not a legal requirement and typically not included as part of a mailed submission of a written statement. For issuers and service providers, it’s important to account for this new method in planning transactions in which a Section 83(b) election may be made.
Please reach out to TJ Wilkinson at Shulman Rogers if you have any questions.
The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work.
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