Filing a Section 83(b) election can seem complex, but following these steps carefully will help ensure a smooth process. Here’s how to file your Section 83(b) election and meet the filing requirements effectively!

Step 1: Complete the 83(b) Election Form

‍To make your Section 83(b) election, start by filling out the necessary election form. You can download the Section 83(b) election form from the IRS website or obtain it from your company. The form requires details like:

• Your Name and Address
• Social Security Number (SSN) or Taxpayer Identification Number (for non-US taxpayers)
• Number of Shares Purchased
• Type of Stock Issued (e.g., restricted stock)
• Date of Stock Issuance or Purchase
• Fair Market Value (FMV) per Share at the Time of Grant
• Amount Paid for Shares (could be $0 or another specified amount)
• Taxable Income: This is the difference between the FMV and the purchase price, which will be taxed as ordinary income.

Example: If you received 100,000 shares at an FMV of $1.00 per share and paid $0, your taxable income would be $100,000 (100,000 x $1.00).

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Step 2: Sign the Form

‍Be sure to sign the form before filing it. The IRS accepts both digital and handwritten signatures.

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Step 3: Make Copies of the Completed Form

‍For filing your Section 83(b) election, create three copies of the signed form:

1. One copy for the IRS
2. One copy for your company
3. One copy for your personal records

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Step 4: Prepare Your IRS Filing

‍Mail the original signed form to the IRS within 30 days of stock issuance to meet the Section 83(b) election filing requirements. Missing this deadline invalidates the election, so use Certified Mail with Return Receipt for proof. Send it to the IRS office where you typically file your tax returns, or check the IRS website under "where to file."

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Step 5: Submit a Copy to Your Company

‍Send a copy of the 83(b) election form to your company's HR or legal department, as this helps maintain accurate tax records.

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Step 6: Keep Documentation for Your Records

‍Save a copy of the signed form, Certified Mail receipt, and any return confirmation from the IRS. Many experts recommend taking photos or scanning these documents for an added backup.

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Need help with these filing steps? We’ll gladly take it off your hands 👼

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Missed the Section 83(b) Election Deadline?

‍If you missed filing your Section 83(b) election within the 30-day period, it’s important to know that the election may not be valid, and you may face tax consequences. Consult a tax professional to understand your options.

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Instructions for Filing Section 83(b) Election (Non-US Taxpayers)

‍If you’re a non-US taxpayer, you might need an Individual Taxpayer Identification Number (ITIN) to file. If you haven’t received your ITIN by the 30-day deadline, some advisors suggest entering “applied for” or “N/A” where required, but consulting a tax advisor can help avoid potential issues.

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Where and How to File

• Mailing Address: Send the form to the IRS address for your annual tax return filings. Search “where to file” on the IRS website, or call 1 (800) 829-1040 for verification.
• Mailing Method: Using Certified Mail with Return Receipt ensures you have proof of filing, which is crucial if issues arise.

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