Section 83(b) election is often considered an attractive tax planning instrument for companies in the early stages of enterprise development. Founders or company employees that make the 83(b) election pay their income-tax at the time of grant (not vesting) on the difference between the amount they paid and fair market value (FMV) of the stock at that point of time. They subsequently pay a capital gains tax at the time of sale to the extent of value appreciation.
However, to avail this advantage, it is extremely important for the tax payers to make a timely 83(b) election with the IRS to adverse tax consequences.
As a leading provider of valuation services, Aranca has extensive experience in helping companies seeking to comply with Section 83(b) election. Having conducted over 2000 valuation assignments to determine fair market value, as part of our IRC 409A valuation services, Aranca’s highly experienced and ASA-certified valuation professionals provide in-depth analyses and valuation expertise required for Section 83(b) compliance.
Our appraisal reports are comprehensive, objective and defensible to withstand any audit review and IRS scrutiny.