IRS Issues Final Rules On Property Transferred For Services

Law360, New York (February 25, 2014, 1:28 PM EST) -- The Internal Revenue Service on Tuesday released final regulations explaining the circumstances in which property that is exchanged for the performance of services is transferred with a substantial risk of forfeiture.

The rules apply to individuals, such as company employees who receive stock in exchange for services, and clarify that a substantial risk of forfeiture is created in such exchanges if there is a service condition or other condition related to the purpose of the transfer. Such transfers are governed under Section 83 of the Internal...
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