If you're an employee who receives stock options as part of your compensation package, this one’s for you. Many of you may be familiar with the IRS form known as the "83(b) election." For years, this form has been a crucial part of the process for employees awarded stock options, typically filed within 30 days of receiving those options. The purpose of the 83(b) election was to allow you to reduce the amount of tax you might ultimately pay when you sell the stock.

However, things have changed.

Introducing IRS Form 15620

As of January 1, 2025, the IRS has introduced a new form to replace the 83(b) election: IRS Form 15620. This new form serves the same purpose—helping you take advantage of potential tax savings—but with a few changes in the filing process. Unlike the old 83(b) form, Form 15620 cannot be e-filed yet, so it must be physically mailed to the IRS.

Do You Need to File the New Form?

If you have previously filed the 83(b) election, there is good news: You do not need to file the new Form 15620. If you have already completed the 83(b) election in the past, you’re all set.

Why This Matters

While this change might seem small, it’s important to stay on top of the new filing requirements to avoid confusion or missing out on any tax-saving opportunities. If you're granted stock options as part of your compensation, filing this form correctly is essential for minimizing your tax liability when you eventually sell the stock.

If you have any questions or need further assistance with understanding or filing IRS Form 15620, please don’t hesitate to reach out. We're here to help you navigate these changes and make the most of your tax strategies.

Let us know if we can help!