What is Form 15620?
Form 1562 is an optional IRS form that allows taxpayers to make a Section 83(b) election regarding restricted stock or property received for services. By completing this form, taxpayers can report the property's fair market value as income at the time of grant instead of waiting until it vests. This can be beneficial, as it may lower future tax liabilities if the property appreciates in value. To be valid, the completed form must be mailed to the IRS office corresponding to the taxpayer's federal income tax return filing location.
What is Form 15620 used for?
Form 1562 is important for managing taxes related to unvested property. Here’s what it’s used for:
- Tax Strategy: Potentially lower future taxes on equity by recognizing income when granted.
- Timing Control: Avoid higher tax rates at vesting if the property increases in value.
- Record Keeping: Ensure compliance with IRS rules and maintain clear election records.
- Certainty: Streamline filing and ensure all necessary information is included.
How to fill out Form 15620?
- 1
Fill out Form 1562: Input the name, TIN, and address of the service recipient, along with details about the property transfer and fair market value.
- 2
Include required details: Enter the number of shares, type of shares, issuing company name, date granted, FMV, and amount paid.
- 3
Mail to IRS: Send the completed form to the IRS office where you file your federal income tax return via certified mail.
- 4
Send to employer: Deliver a copy of the completed form to the employer that transferred the property.
- 5
Retain a copy: Keep a copy for your permanent records.
Who is required to fill out Form 15620?
Taxpayers receiving restricted securities, including employees and independent contractors, are responsible for completing Form 15620 for a Section 83(b) Election Statement.
After filling out Form 15620, taxpayers must mail it to the IRS within 30 days and inform their employer to ensure proper reporting and tax withholding.
When is Form 15620 not required?
Form 1562 for Section 83(b) Election Statement isn't required if taxpayers use a sample statement from Rev. Proc. 2012-29 or another statement that includes all necessary information. Additionally, taxpayers do not need to file this election if they decide against making an election altogether.
When is Form 15620 due?
The deadline for Form 1562 is 30 days after acquiring the stock or exercising stock options. If the due date lands on a weekend or holiday, it must be postmarked by the following business day. Remember to keep proof of timely mailing when filing with the IRS.
How to get a blank Form 15620?
To get an IRS-issued blank Form 15620 for your Section 83(b) election, simply visit our website. We have the form pre-loaded in our editor, allowing you to fill it out directly. Remember, PDF Guru aids in filling and downloading forms, but we do not support filing them.
How to sign Form 15620?
To sign Form 1562 for the Section 83(b) Election Statement, you can apply an electronic signature or a handwritten signature, as the IRS has extended the use of electronic signatures indefinitely. While PDF Guru allows you to create a simple electronic signature for your form, it does not support digital signatures or submission. After filling out and signing your form, download it for your records, and ensure you check for any latest updates regarding submission requirements.
Where to file Form 15620?
To submit Form 1562 for the Section 83(b) Election Statement, you must mail it. The address varies based on your state or if you're overseas.
If you're using USPS, send it to the Department of the Treasury Internal Revenue Service in Austin, TX. For private delivery services, use the Austin – Internal Revenue Submission Processing Center in Austin, TX.
