In response to requests from taxpayers and employers, the U.S. Internal Revenue Service (IRS) issued Notice 2018-97 (PDF) to provide initial guidance on new Sec. 83(i), which was added to the Code by the law known as the Tax Cuts and Jobs Act, P.L. 115-97. New Sec. 83(i) permits eligible private company employees to elect to defer for up to five years the recognition of income from private company stock acquired by exercising a stock option or settling a restricted stock unit (RSU), provided the employee received the stock as part of a qualified equity grant. The income-deferral election applies to stock received due to options exercised or RSUs settled after Dec. 31, 2017.