"The IRS issued proposed regulations to clarify the application of Code section 83, which provides that property transferred in connection with the performance of services is included in the service provider's income once it is transferable or no longer subject to a substantial risk of forfeiture. The proposed regulations clarify that: (i) a substantial risk of forfeiture may be established only through a service condition or a condition related to the purpose of the transfer, (ii) both the likelihood that the forfeiture event will occur and the likelihood the forfeiture will be enforced need to be considered in determining whether there is a substantial risk of forfeiture, and (iii) transfer restrictions do not create a substantial risk of forfeiture except as specifically provided under Code section 83(c)(3) or related regulations."

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