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Today s date here RETURN SERVICE REQUESTED Department of the Treasury Internal Revenue Service Center Fresno, CA 93888-0002 Re: Election Under Section 83(b) of the Internal Revenue Code By your name.

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Non-US Taxpayers You can make an 83(b) election by filing a statement with the IRS within 30 days of acquiring your shares. An 83(b) election tells the IRS how you'd like to be taxed on shares that are subject to vesting.

To make an 83(b) election, you must complete the following steps within 30 days of your grant date: • Complete the IRS 83(b) form on page 2. Mail the completed form to the IRS within 30 days of your grant date. Address it to the IRS Service Center where you file your taxes. (See the chart provided on page 3.)

Vesting means an employee has earned actual ownership of the company shares or stock options, usually by satisfying a certain time period of employment. Making an 83(b) election means that you're able to pay income taxes earlier, often before your company shares have had the opportunity to appreciate in value.

The Carta policy team worked with a broad coalition of accelerators, law firms, and investors to get the IRS to temporarily allow an electronic signature for 83(b) filings during the COVID-19 pandemic. Currently, once the form is signed electronically, you still need to physically mail it to the IRS.

Example of an 83(b) Election If the total value of the company's equity increases to $100,000, then the co-founder's 10% value increases to $10,000 from $1,000. The co-founder's tax liability for year 1 will be deduced from ($10,000 - $1,000) x 20% i.e. in effect, ($100,000 - $10,000) x 10% x 20% = $1,800.

So what is a Section 83(b) election? It's a letter you send to the Internal Revenue Service letting them know you'd like to be taxed on your equity, such as shares of restricted stock, on the date the equity was granted to you rather than on the date the equity vests.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232