Save Yourself (!!) 83(b) Election Checklist

In our blog post, Vesting Stock? 30 days to file 83(b), we explained the reasons to file an 83(b) election with the Internal Revenue Service (“IRS”). As a reminder, the IRS will void any election application sent after 30 days from the date the stock was granted. File early to avoid missing the 30 day deadline. So, how do you file? We’re dropping the beat with five easy steps.

Step 1: Complete the 83(b) election forms and make four copies.

Complete the 83(b) election letter and forms. A sample letter, provided by Rubicon Law Group, can be found below. You will need to print four copies to distribute to the following parties: two copies to the IRS (one for the IRS to keep on file, and one for them to stamp and send back to you for record keeping); one copy for your employer; one copy for your personal taxpayer records (in case the IRS doesn’t send your copy back). We recommend you save this document on the cloud incase you misplace your hard copies.


Step 2: Send to your IRS Service Center.

To find your designated IRS Service Center, check the Where to File Paper Tax Returns With or Without a Payment, available on Mail to the address designated in the column for “not enclosing a payment.” Send the 83(b) election forms through certified mail with return receipt requested. To receive your date-stamped copy from the IRS, include a self-addressed, postage-paid envelope and request the IRS return the forms with a date-stamp for your personal record keeping.

Step 3: Send a copy to your employer.

Send a copy to your employer for the company’s record keeping.

Step 4: Check state laws for personal state income tax filing requirements.

Consult your tax professional on your state law requirements for disclosing 83(b) filings on your personal state income taxes.

Step 5: Retain a copy for your taxpayer records.

We recommend you file the hard copy for safekeeping, and file an e-file on the Cloud in the event you misplace the hard copy.

Make sure you complete this process within 30 days of receiving the issued stock. If you fail to meet the 30 day deadline, the IRS will mark your election void, and you will be subject to ordinary income tax as the stock vests overtime. To best understand the implications of missing the deadline, read our blog post. Best of luck and congratulations on your piece of the equity pie!


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