How to Verify the IRS has Received Your Section 83b Election
Filing a Section 83b Election can be a crucial step in tax planning, particularly for individuals who receive ownership in equity before it vests. However, it can be frustrating to lose track of the submission forms or the official acknowledgment of such a filing. This article provides a comprehensive guide on how to verify if the Internal Revenue Service (IRS) has received your Section 83b Election and offers several methods to ensure you have a definitive answer, despite the potential challenges.
Understanding the Filing Process
The Section 83b Election is a provision in the U.S. tax code that allows individuals to elect not to recognize income from property acquired as compensation in exchange for services if the property is subject to future restrictions on disposition. To make this election, you must file IRS Form 83b within 30 days of receiving the property.
Upon submitting the form, you should typically receive a confirmation letter from the IRS stating, ‘We have received your Section 83b Election and have associated it with your account.’ This is often the best way to confirm that your election has been processed. However, if you are unable to locate the form, confirm its mailing, or do not receive the confirmation, several methods can assist in obtaining a definitive answer from the IRS.
Methods to Verify Receipt
1. Calling the IRS
If you are unable to find a confirmation letter or notice of receipt, the simplest method is to call the IRS. However, be prepared for extended waiting times, as the IRS phone lines can be extremely busy. Here’s a step-by-step guide on how to do this:
Call 1.800.829.1040. This is a central line for tax-related inquiries. The calls can often last between 2 to 4 hours, and you may spend the first hour on hold. Calmly explain your situation and ask to be transferred to the section that deals with Section 83b elections. This might require patience. Request a confirmation of receipt or admission that the IRS does not have a record of your 83b filing.Have a copy of your 83b filing ready and all other relevant documentation to provide details to the IRS agent.
2. Using Local Taxpayer Advocacy Service (TAS)
Another option is to call your local Taxpayer Advocacy Service (TAS) office. TAS can be helpful, especially if your issue is related to general tax-related concerns. Before making the call, ensure you know the location of your local IRS building that provides personal assistance.
Contact your local IRS building. Even though TAS primarily assists with tax issues that have already caused problems, they might still help in this situation. Request to speak with a representative who can assist with your 83b election inquiry. Ask for written confirmation that the 83b filing has been received or if it was not found in their records.3. Online Form 911 Submission
For those who prefer not to call or visit the IRS in person, you can opt for an online submission using Form 911. This form is associated with the Taxpayer Advocate Service (TAS).
Complete Form 911 and ensure you have all the necessary information, including your identification, contact information, and a detailed description of your issue (box 12a). Mail the completed form certified with a return receipt requested. This will ensure the IRS acknowledges receipt. Follow up by checking the status of your request through the Form 911 submission process.Ensuring Timely Receipt and Confirmation
To increase the likelihood of a timely receipt and confirmation, follow these best practices:
Double-check that your 83b filing is complete with all required information and signatures. Use certified mail with a return receipt. Keep a record of the mailing details for future reference. Provide a self-addressed stamped envelope with your form for any responses from the IRS. Consider sending copies of the 83b filing with your tax return for that year. Request acknowledgment and timely processing by sending a polite letter along with your mailing.Conclusion
While there may be significant delays and various challenges associated with verifying the receipt of your Section 83b Election, utilizing the methods discussed in this article can help you navigate these issues effectively. Whether you choose to call, visit in person, or use an online form, ensuring you have a definitive answer is essential to your tax planning efforts.