Should an 83(b) statement be filed with the IRS for a foreigner or a founder with no SSN receiving stock or founder stock ? An 83(b) election is a statement by any US taxpayer filed with the Internal Revenue Service within 30 days of the receipt of capital asset including stock saying that (s)he wants to be taxed on the transfer of property currently rather than when it vests. Foreigners are not liable for US taxes and hence an 83(b) filing is redundant. However, if there is a chance that the founder/foreign national would move to US to work for the start up then (s)he should : 1. Apply for ITIN in the meantime 2. File 83(b) with the IRS. To file an 83(b) an ITIN is needed. If (s)he does not have a valid ITIN/SSN or has applied for one then in the section of the 83(b) form where it asks for SSN write " applied for" or "awaiting" and not await receipt of the ITIN. This is because the ITIN usually takes 10-12 weeks putting the person out of the 30-day window. Note: If you purchased/received founder’s stock and there are " no restrictions" such as vesting, you DO NOT need to file an 83(b) Election Form.
Posted on: Thu, 06 Jun 2013 17:56:19 +0000
Trending Topics
Recently Viewed Topics
© 2015