Sec. 83(b) election can be made for AMT purposes on ISO exercise.

• Jurisdiction: United States
• Author: Kautter, David J.
• Date: 01 January 2002

For the first time, the Service, in an information letter (INFO 2001-0224), publicly agreed that a Sec. 83(b) election can be made for alternative minimum tax (AMT) purposes on the exercise of an incentive stock option (ISO). The letter further indicated that a Sec. 83(b) election may be made only for AMT purposes. The IRS also concluded that it would deny an individual's request for revocation of his Sec. 83(b) election if a letter ruling request were submitted.

In the facts of the letter...