Pursuant to advice on forming a small company that issues restricted stock such as described here. I filed an 83(b) election with the IRS last fall via certified mail return receipt and for which I received back the requested date stamped copy confirming their receipt. I will be including a copy of the date stamped 83(b) election with my 2014 filing as back up.

However, about four months later, the IRS wrote back and stated in part (emphasis mine):

Tax Periods: December 31, 2013 [...] We reviewed the information you provided and determined no action is necessary on your account. [...]

This contrasts with a partner who sent their own version of the letter for themselves and for whom the IRS responded in a mostly corresponding letter except the above portions that read for them as thus (emphasis mine):

Tax Periods: December 31, 2014 [...] We have associated your Election under Section 83(b) of the Internal Revenue Code of 1986 with your 2014 tax account. [...]

To my reading, it would seem the IRS screwed up the processing of my letter. They mention tax year 2013 instead of 2014 and they state no action was taken instead of associating my election with my 2014 tax account.

Because their letter also stated:

If you have questions, you can call us toll free at 1-800-829-8374.

I called, but after a 30 minute hold, the representative stated my inquiry was beyond the scope of their phone system and that I had to put my query in writing. (Not sure why they suggested to call in the first place?)

Therefore, I'm wondering, should I write them a letter instructing them that they should have properly taken the action of associating my election with my 2014 tax account, or should I just let it be since I have made no error here, only them, and proceed with attaching the letter when I file for 2014?

1 Answer 1


I think you should consult a professional with experience in 83(b) election and dealing with the problems associated with that. The cost of the mistake can be huge, and you better make sure everything is done properly.

For starters, I would look at the copy of the letter you sent to verify that you didn't write the year wrong. I know you checked it twice, but check again. Tax advisers can call a dedicated IRS help line for practitioners where someone may be able to provide more information (with your power of attorney on file), and they can also request the copy of the original letter you've sent to verify it is correct.

In any case, you must attach the copy of the letter you sent to your 2014 tax return (as this is a requirement for the election to be valid).

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