Filing Form 83(b) Election
We can assist you in completing the form within 2–3 business days and help reduce future taxation on your shares
Purpose of Form 83(b) Election
Form 83(b) Election is filed by employees or co-owners of U.S. companies, who receive shares subject to vesting. It allows you to pay tax on the full value of the shares immediately, at the time they are granted, instead of when ownership rights fully vest. This can reduce the overall tax burden if the shares increase in value over time
Who should file Form 83(b)?
Founders
Almost always, since shares are usually granted at a minimal price
Stated or Par Value
Anyone receiving shares with a low stated or par value, as this may lower taxes
Early employees
Especially before the company’s value grows
Professional completion of tax forms and reports
Our specialists will ensure all U.S. business compliance requirements are met on time, helping you avoid unwanted penalties and other risks. Focus on growing your business. We will advise you on whether filing the form is necessary and assist in completing it in full compliance with IRS requirements
What is required to complete the form
Form 83(b) Election must be filed within 30 days from the date the shares are granted, so do not delay, contact our specialists right away
Consultation
Contact us through any convenient channel. Provide the necessary information to our attorney
Filling
Send the completed form to the IRS by certified mail within 30 days from the date you receive the shares. Keep one copy for your personal tax records and give one copy to your company
Cost of assistance with completing and filing Form 83(b) Election
Preparation of the form in compliance with IRS requirements, accurate completion, submission within 30 days, and confirmation retention
- We analyze the stock transfer agreement, including the type and quantity of shares, as well as their fair market value
Order a free consultation on 83(b) Election filing
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Ivan Chebotarov
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Frequently asked questions about the 83(b) Election
It is a statement submitted to the IRS (U.S. Internal Revenue Service),that allows you to pay tax at the time of receiving unvested shares rather than gradually as they vest. It is usually filed when receiving restricted stock (RSAs) or upon early exercise of stock options.
Within 30 days of the share transfer (or early exercise). The form is sent by mail to the IRS (together with a cover letter). If you miss the 30-day deadline, you lose the right to file Form 83(b).
You pay tax immediately when the share value is still low or close to zero. If the company grows, this increase in value becomes capital gain, which is taxed at a lower rate (20% instead of about 37%). This is especially beneficial when the shares are granted at the very beginning and have little or no cost.
If the company goes bankrupt or you lose the unvested shares, the tax is non-refundable. You also pay tax in advance, even though the shares have not yet vested.
No. Only if you use the early exercise right (i.e., you purchase shares before they vest). Standard options without early exercise do not require Form 83(b), since the tax is triggered later (upon exercise or sale).
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