Proposed Section 83(b) Regulations May Benefit Nonresidents

The Internal Revenue Service in July 2015 issued proposed regulations (REG-135524-14) that would eliminate the requirement that taxpayers include a copy of an Internal Revenue Code Section 83(b) election with their returns. Although the stated purpose of the proposed regulations is to facilitate electronic return filing, this simple procedural change would remove an obstacle to nonresidents who plan to become U.S. tax residents and who therefore may benefit from making a Section 83(b) election.

The proposed change would apply to property transferred on or after Jan. 1, 2016, but taxpayers may rely on the proposed regulations for property transferred on or after Jan. 1, 2015.

READ: Proposed Section 83(b) Regulations May Benefit Nonresidents