What Happens If You Do Not File an 83(b) Election?

There is no requirement to file an 83(b) Election Form.  By default, the IRS assumes that you have not filed it. The IRS taxes Restricted Stock (stock that vests over time) using a “pay me now or pay me later” method.  By not filing an 83(b)...

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What is an 83(b) Election?

An 83(b) Election Form is a written statement to the IRS telling them that you have been granted Restricted Stock from a Company where you will be providing services (employment, consulting, etc.). There is no official IRS form – it is just a written statement...

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$1.7M Mistake for FILING an 83(b)

This is a very rare case when FILING an 83(b) Election made a bad situation worse: Got a call last week from the CEO of a small, publicly-held company.  He had an easy-to-answer 83(b) Election question.  He was not a client, so we discussed other 83(b)...

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