The IRS has adopted the new final regulations for Reg. 1.83-2. Under IRC 83, when a person performs services in exchange for property (typically stock), the excess fair market value of the property over any amount paid for the property is included in the person who performs the service's gross income. (The provider must have transferable rights and not be substantial risk of forfeiture of the property). IRC 83(b) allows an election to include this amount in gross income as compensation for services.
Under the new regulations, taxpayers do not need to file a copy of the 83(b) election with their tax return any more.
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