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Subject:   ISO unexercise question
Date:   Tue, 3 Apr 2001
From:   Srin

Dear Mr. Gray,

Thank you very much for your very informative website.

I have early exercised my unvested ISO's and also filed form 83B.

Can I unexercise (withdraw exercise) some of those options? If so, is there a time period between exercise and unexercise, and do I need to file something with the IRS?

Thank you.

Srin

Answer

Date:   Wed, 25 Jul 2001

Hello Srin,

I’m sorry, but the Section 83(b) election is irrevocable.

The election can only be revoked with the consent of the IRS, which isn’t likely.

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.