How to Confirm the IRS Received Your 83(b) Election

An 83(b) election allows an individual to pay taxes on restricted stock or other property at the time it is granted, rather than when it vests. This election can be advantageous if the stock’s value is expected to appreciate significantly, as it locks in the tax rate on the lower, grant-date value. Confirming the Internal Revenue Service (IRS) has received this election is an important step for tax compliance. This article guides taxpayers through the information and steps to verify the IRS’s receipt of their 83(b) election.

Information Needed for Confirmation

Before initiating confirmation efforts, gathering specific documentation from your original 83(b) election filing is important. These records serve as primary evidence for any inquiries. Retain a precise copy of the 83(b) election form as it was submitted to the IRS.

Proof of mailing should also be kept, including a Certified Mail receipt, a return receipt requested card, or postal tracking numbers. Knowing the exact mailing date and the specific IRS address to which it was sent is also important. Any accompanying documents, such as the restricted stock agreement or grant notice, should also be part of your records. These records provide proof of submission and necessary data for future confirmation.

Methods for Confirming Receipt

Utilizing the proof of mailing is often the most direct initial confirmation method. If Certified Mail with a return receipt was used, the signed green card serves as direct evidence of delivery. If a tracking service was used, checking the tracking number online can provide detailed delivery information, including the date and time of receipt at the IRS facility.

If direct proof of delivery through mailing services is unavailable or inconclusive, contacting the IRS directly is the next step. You can reach the IRS for individual tax inquiries by calling 1-800-829-1040, typically available Monday through Friday from 7 AM to 7 PM local time. When calling, have your Social Security Number, the date you mailed the election, and details from your copy of the 83(b) form ready. Explain that you are inquiring about the receipt of an 83(b) election and ask if the document has been processed or recorded in your tax file. The IRS may not have immediate records for all recently mailed documents, as processing times can vary, sometimes taking several weeks.

Consulting with a tax professional, such as a Certified Public Accountant (CPA) or a tax attorney, can be beneficial if confirming receipt proves challenging or if your situation is complex. These professionals can assist in navigating IRS procedures and interpreting communication from the agency. They can also help determine if alternative methods of inquiry or further action are warranted based on your specific circumstances.

Addressing Confirmation Issues

If you are unable to confirm receipt of your 83(b) election, a methodical review of your records is necessary. Double-check all mailing documentation, including tracking numbers and the copy of the election, to ensure accuracy and completeness. Verify that the IRS address used for mailing was correct and that the election was sent within the 30-day deadline from the grant date of the restricted property, as outlined in Treasury Regulation Section 1.83-2.

In situations where the original election cannot be confirmed, and the 30-day window has passed, resubmission is generally not an option. However, if you possess clear proof of timely mailing, a tax professional might be able to argue timely filing with the IRS, even if the document was misplaced by the agency. Documenting every attempt at confirmation, including dates of phone calls, names of IRS representatives, and any correspondence, is important. This detailed log provides a comprehensive history of your efforts to comply.

If significant confirmation issues arise, particularly if the 30-day election period has elapsed and the IRS disputes receipt, seeking guidance from a tax attorney or CPA is recommended. These professionals can assess the specifics of your situation, advise on potential remedies, and represent you in communication with the IRS. Their expertise can be crucial in navigating the complexities of tax law and protecting your rights in such a scenario.