In PLR 201438006, the IRS ruled that a Section 83(b) election was valid even though the taxpayer failed to attach a copy of the election to his Form 1040, "U.S. Individual Income Tax Return," for the taxable year in which the election was made.
Under the facts of this ruling, the taxpayer received restricted stock connected with the performance of services and he made a timely election under Section 83(b) to include the fair market value of the restricted stock in gross income on the grant date. Treas. Reg. Sec. 1.83-2(c) requires taxpayers to attach a copy of the election statement to their income tax return for the year the property is transferred. However, the taxpayer's tax return preparer failed to attach a copy of the election to the taxpayer's tax return.
The IRS ruled that the taxpayer fulfilled the requirements for a valid election under Section 83(b) when the election statement was mailed to the IRS office and that the failure to submit a copy of the statement with the tax return didn't affect the validity of the election. Thus, the IRS ruled, the election under Section 83(b) remained in effect.
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