83(b) Election Form: Complete Guide to Filing an 83(b) Election with the IRS

If you've received restricted stock from a startup, you've probably heard that you need to file the 83(b) election form within 30 days.

Searches for terms like:

• "83b election form"
• "IRS form 83b"
• "section 83b election"
• "file 83b"
• "form 15620"

have been rising, and for good reason. Missing this filing can create massive, unexpected tax consequences.

This guide explains:

• What the 83(b) election form is
• Whether there's an official IRS form
• How to file it properly
• Where to send it
• What happens if you miss the deadline

---

What Is the 83(b) Election Form?

The 83(b) election is a tax filing that allows you to choose how and when your equity is taxed.

Under Section 83(b) of the Internal Revenue Code, you may elect to be taxed at the time you receive restricted stock, rather than when it vests.

This election can significantly reduce future tax liability, especially for startup founders and early employees.

---

Is There an Official IRS Form 83(b)?

This is where many people get confused.

There is no official pre-filled "IRS Form 83(b)" like a Form W-2 or 1040.

Instead:

• The 83(b) election is a written statement
• It must include specific required information
• It is mailed to the Internal Revenue Service

You create the document yourself (or through counsel).

---

What Is Form 15620?

"Form 15620" often appears in rising searches related to the 83(b) election.

Form 15620 is not the 83(b) election itself. It is used in very limited situations involving relief for late elections under certain IRS procedures.

Most filers do not use Form 15620 when filing an initial 83(b) election.

If you are filing on time (within 30 days), you typically do not need Form 15620.

---

Why File an 83(b) Election?

Without an 83(b) election:

• You are taxed as shares vest
• Tax is based on the fair market value at each vesting date
• If the company grows, you may owe ordinary income tax on large amounts

With an 83(b) election:

• You are taxed at grant (often when value is very low)
• Future appreciation may be taxed as capital gains instead of ordinary income
• You avoid being taxed on value increases during vesting

For early-stage founders receiving stock at near-zero value, this can mean the difference between minimal tax and a very large tax bill.

---

Who Should File an 83(b) Election?

Typically:

• Startup founders receiving restricted stock
• Early employees receiving restricted stock subject to vesting
• Individuals receiving equity compensation that is immediately issued but restricted

You generally do not file an 83(b) election for:

• RSUs (Restricted Stock Units)
• Standard stock options (until exercised)
• Unvested options

Always confirm what type of equity you received.

---

What Must Be Included in the 83(b) Election Form?

Your written statement must include:

1. Your name, address, and taxpayer identification number
2. A description of the property (e.g., common stock)
3. The date the property was transferred
4. The taxable year of the election
5. The nature of any restrictions
6. The fair market value at the time of transfer
7. The amount paid (if any)
8. A statement that you are making the election under Section 83(b)

Missing required information can invalidate the election.

---

When Must You File the 83(b) Election?

You must file within:

30 days of the date the stock was granted.

Important details:

• The deadline is strict
• There are no extensions
• Weekends and holidays still count in the 30-day window

If the IRS receives your election late, it is generally invalid.

---

Where Do You Send the 83(b) Election?

You mail the signed election to the IRS service center where you file your tax return.

Best practice:

• Send via certified mail
• Keep proof of mailing
• Keep a copy for your records
• Provide a copy to your employer

You no longer need to attach a copy to your tax return (under current IRS rules), but you should retain documentation.

---

What Happens If You Don't File an 83(b)?

If you miss the 30-day deadline:

• You will be taxed as the shares vest
• If the company grows significantly, you could owe ordinary income tax on large amounts
• You may face tax without liquidity

This is one of the most common and costly startup tax mistakes.

---

83(b) Election vs. QSBS

Many founders search for:

• "83b vs qsbs"
• "Does filing 83b affect QSBS?"

These are separate rules:

• 83(b) determines when you are taxed on restricted stock
• QSBS (Section 1202) may allow exclusion of capital gains if requirements are met

Filing an 83(b) election does not automatically grant QSBS treatment, but it may help position you for favorable long-term tax treatment.

---

Can You File an 83(b) Late?

Generally, no.

Relief is extremely limited and fact-specific.

Some late election relief procedures exist under certain IRS regulations, but they are not guaranteed and often require legal guidance.

If you are within the 30-day window, act immediately.

---

Common 83(b) Election Mistakes

• Missing the 30-day deadline
• Assuming the company files it for you
• Forgetting to sign the election
• Not keeping proof of mailing
• Filing when you received RSUs instead of restricted stock
• Incorrectly stating fair market value

Because there is no official IRS "83b form," many people underestimate the formality required.

---

Final Thoughts on the 83(b) Election Form

The 83(b) election form is one of the most important filings for startup founders and early employees.

It is:

• Time-sensitive
• Technical
• Potentially life-changing in tax impact

If you received restricted stock subject to vesting, you should determine immediately whether an 83(b) election is appropriate, and file within 30 days if necessary.

The cost of inaction can be significant.

If you have a quick question about the 83(b) election or how it applies to your situation, you can ask Margen's model for free. For personalized planning and filing, consult a tax professional.