N-2018-97: Guidance on the Application of Section 83(i)
Internal Revenue Service (IRS) sent this bulletin at 12/07/2018 12:25 PM EST
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Issue Number: N-2018-97Inside This IssueNotice 2018-97 provides guidance to taxpayers on (1) application of the requirement in § 83(i)(2)(C)(i)(II) that grants be made to 80% of the employer’s employees, (2) application of income tax withholding to the deferred income related to qualified stock, and (3) the manner in which an employer may opt out of permitting employees to elect the deferred tax treatment even if the requirements under § 83(i) are otherwise met. Section 83 generally provides for the federal tax treatment of property transferred in connection with the performance of services. Section 83(i) allows certain employees to elect to defer income that would otherwise be included under § 83(a) upon the exercise of a stock option or settlement of a stock-settled restricted stock unit. Income subject to such an election may be deferred for up to 5 years, subject to certain limitations. Notice 2018-97 will be in IRB 2018-52, dated 12/24/2018. Thank you for subscribing to IRS GuideWire, an IRS e-mail service. If you are a Tax Professional and have a specific concern about your tax situation, call the IRS Practitioner Priority Service 1-866-860-4259. This message was distributed automatically from the IRS GuideWire mailing list. Please Do Not Reply To This Message. |