Substantial Risk of Forfeiture

About Substantial Risk of Forfeiture:

The Substantial Risk of Forfeiture (SRF) is a condition whereby an individual's rights to full enjoyment of property are predicated upon his or her performing, or refraining from performing, certain actions. So long as the SRF is present, the property thus restricted is not taxed to the employee. For example, requiring the potential property owner to complete a substantial period of service or lose the property would be considered an SRF.

See also other Tax Terms and Definitions in U.S.A.

restricted property and Former IRC (check if this IRC provision is current here) §83(c).