What is an 83(i) Election?

An 83(i) election was introduced in 2017 as part of the Tax Cuts and Jobs Act. When requirements are met, an employee at a privately held company with an NSO or RSU may elect to defer federal income tax on the NSO exercise or RSU settlement for up to 5 years.

While attractive in theory, due to the restrictions and limitations it is very rarely utilized in practice. For more details we recommend visiting: Pillsbury Law: IRS Issues 83(i) Guidance