Do You Need to Attach 83(b) Election to Tax Return?

Choosing which forms to include and which to leave out when submitting taxes can be perplexing. The 83(b) election form is one document that is frequently misinterpreted. You can choose to pay taxes on the fair market value of restricted shares at the time of issuance rather than at the time of vesting by declaring your choice on the 83(b) election form. But is the 83(b) election form need to be included with your tax return? The quick response is no.

Although the 83(b) election form is not required to be included with your tax return, you must still file it with the IRS within 30 days after the award date. If the paperwork is not submitted by the deadline, you will forfeit your right to make the choice and be liable for taxes upon vesting.

It’s also important to remember that Form CT-3-S must be submitted with your New York State tax return. In order to transfer revenue, losses, deductions, and credits through to their shareholders for federal tax purposes, S corporations must utilize this form to declare any income or loss.

S corporations are not subject to corporate taxation in New York, but shareholders are still liable for paying taxes on their portion of the company’s earnings. This income or loss must be reported on Form CT-3-S and submitted to the New York State Department of Taxation and Finance.

The corporation must have already made the S election with the IRS in order to be regarded as a S corporation for state tax purposes, even though New York State does not require a separate S election form to be completed.

You can use the online services provided by the New York State Tax Department to electronically file Form CT-3-S if you need to do so in New York. In addition, you have the option of filing by fax or mail. You can utilize an online faxing service like eFax or MyFax if you decide to submit documents by fax. With the help of these services, you can transmit faxes via the internet without a physical fax machine.

Finally, even though you don’t have to file the 83(b) election form with your tax return, it’s crucial to do so within 30 days after the grant date. Additionally, Form CT-3-S must be included if you are submitting a New York State tax return and have income or losses from a S corporation. This form may be submitted digitally, via mail, or via online faxing service.