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Subject:   Early exercise - section 83(b) question
Date:   Mon, 3 Jan 2000
From:   Lars

Just read your incentive stock options report, and have one question: I sent the IRS an election 83(b) letter a few days after I exercised some ISO in late 98. However, I totally forgot to attach a copy to my 98 (the one submitted in 99) tax return. Will this have any consequences - is my election still valid? Is there anything I should do now?

Thanks,

Lars

Answer

Date:   9 Jan 2000

Hello Lars,

I wouldn't give up.

Just file Form 1040X (and your state amended form) for 1998 and attach a copy of the election.

I hope you mailed the original certified mail.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.