83(b) election

May 20, 2008 0 Replies

the situation: a private, early stage company, dormant for a few years since incorporation



the client owned 100% of their shares for 2+ years. there was no vesting, and thus no 83(b) election was made at that time.



now, 2 years on, these shares will be subject to repurchase over time (essentially a vesting provision for 4 years).



what are the 83(b)-related issues now? will the client have to pay taxes as the the repurchase right lapses?



thanks!


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