[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.9100-18T]

[Page 740-741]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                              General Rules
 
Sec. 301.9100-18T  Election to include in gross income in year of transfer.

    (a) In general. Under section 83(b) of the Internal Revenue Code of 
1954 any person who performs services in connection with which property 
is transferred which at the time of transfer is not transferable by the 
transferee and

[[Page 741]]

is subject to a substantial risk of forfeiture may elect to include in 
his gross income for the taxable year in which such property is 
transferred, the excess of the fair market value of such property at the 
time of transfer (determined without regard to any restriction other 
than a restriction which by its terms will never lapse) over the amount 
(if any) paid for such property. If this election is made section 33(a) 
does not apply with respect to such property, and any subsequent 
appreciation in the value of the property is not taxable as 
compensation. However, if the property is later forfeited, no deduction 
is allowed to any person with respect to such forfeiture. This election 
is not necessary in the case of property which is transferred subject 
only to a restriction which by its terms will never lapse.
    (b) Manner of making election. The election referred to in paragraph 
(a) of this section is made by filing two copies of a written statement 
with the internal revenue officer with whom the person who performed the 
services files his return.
    (c) Additional copies. The person who performed the services shall 
also submit a copy of the statement referred to in paragraph (b) of this 
section to the person for whom the services are performed, and, in 
addition, if the person who performs the services in connection with 
which restricted property is transferred and the transferee of such 
property are not the same person, the person who performs the services 
shall submit a copy of such statement to the transferee of the property.
    (d) Content of statement. The statement shall indicate that it is 
being made under section 83(b) of the Code, and shall contain the 
following information:
    (1) The name, address, taxpayer identification number and the 
taxable year (For example, ``Calendar year 1969'' or ``Fiscal year 
ending May 31, 1970'') of the person who performed the services;
    (2) A description of each property with respect to which the 
election is being made;
    (3) The date or dates on which the property is transferred;
    (4) The nature of the restriction or restrictions to which the 
property is subject;
    (5) The fair market value at the time of transfer (determined 
without regard to any restriction other than a restriction which by its 
terms will never lapse) of each property with respect to which the 
election is being made; and
    (6) The amount (if any) paid for such property.
    (e) Time for making election. The statement referred to in paragraph 
(b) of this section shall be filed not later than 30 days after the date 
the property was transferred (or, if later, January 29, 1970). Any 
statement filed before February 15, 1970, may be amended not later than 
30 days after the publication of this Treasury decision in the Federal 
Register in order to make it conform to the requirements of paragraph 
(d) of this section (January 17, 1970).
    (f) Revocability of election. An election under section 83(b) may 
not be revoked except with the consent of the Commissioner.

[T.D. 7021, 35 FR 626, Jan. 17, 1970; 35 FR 889, Jan. 22, 1970. 
Redesignated by T.D. 8435, 57 FR 43895, Sept. 23, 1992]