Hi guys!
I have two questions regarding to the 83(b) election. The company I work for granted some property to me in 2023. The Form of Section 83(b) Election that I signed says:
The date on which such property was transferred is May 31, 2023. The taxable year to which this election relates is calendar year 2023.
I signed the Form of Section 83(b) Election on June 14, 2023, and sent the originally signed Section 83(b) election to the IRS office by USPS Certified Mail with Return Receipt (within 30 days). IRS mailed back the date-stamped card (and additional 83(b) election form copy I sent) on June 21, 2023. However, In August 2023, I got a letter from IRS and IRS says "We have received your 83 (b) election and applied it to your account for the 2022 tax year".
My questions are:
(1) Shouldn't IRS apply the 83(b) election to my 2023 tax year? The grant happened on May 31, 2023 and the Form of Section 83(b) Election I signed says the tax year for which this election relates is calendar year 2023. Is it because IRS didn’t have my 2023 tax information yet when they send me the letter on August 2023? Should I contact IRS for a correction?
(2) In TurboTax, should I or where should I report the 83(b) related grants? The Form of Section 83(b) Election I signed says "The fair market value at the time of transfer (determined without regard to any restriction other than restrictions which by their terms will never lapse) of the Units is $0.00 per Unit. The amount paid for such property by the taxpayer is $0.00 per Unit." I search TurboTax community and someone says The fair market value of the award should already be included in W-2, box 1, and the IRS no longer requires that we include our 83(b) election form with our taxes when filing. In my case, the FMV is 0 and I didn't pay, so I can't tell if it's included in W-2 box 1 or not.
Thanks a lot in advance!
