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Complete 83(b) Election Checklist for Founders

Filing an 83(b) election is a process where precision matters. A single missed step can invalidate your election and lead to a massive, unexpected tax bill down the road. This printable checklist is designed for founders and early employees to ensure nothing slips through the cracks.

Follow these 10 steps methodically to prepare your documents, meet the strict 30-day deadline, and create the essential paper trail that proves you filed correctly.

Key Takeaways

  • The 30-Day Deadline is Inflexible: Your filing must be postmarked within 30 days of your stock grant date. No exceptions, no extensions.
  • Certified Mail is Non-Negotiable: USPS Certified Mail is the only way to obtain a legally binding postmark that serves as your proof of a timely filing.
  • Create a Permanent Record: You are responsible for keeping proof of your filing forever. The IRS will not do it for you.
  • Spousal Consent Matters: If you live in a community property state (AZ, CA, ID, LA, NV, NM, TX, WA, WI), your spouse's signature on the form may be required.

The 83(b) Election Filing Checklist

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    Step 1: Confirm Your Deadline. Identify your stock grant date and count 30 calendar days forward. This is your absolute filing deadline. Mark it on your calendar.
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    Step 2: Complete the Form. Fill out every field on your 83(b) election form. Double-check your Social Security Number, the number of shares, and the Fair Market Value (FMV).
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    Step 3: Sign and Date. Sign your name and write the date you are signing it. A wet ink signature is required.
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    Step 4: Obtain Spousal Signature. If you live in a community property state (AZ, CA, ID, LA, NV, NM, TX, WA, WI), have your spouse sign the consent section of the form.
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    Step 5: Draft a Cover Letter. Write a simple letter stating that you are enclosing your 83(b) election for filing and that you've included a copy to be date-stamped and returned.
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    Step 6: Make Copies. Make at least four copies of the signed form: one original for the IRS, one copy for the IRS to stamp and return, one for your company, and one for your permanent records.
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    Step 7: Prepare a Self-Addressed Stamped Envelope (SASE). Address an envelope to yourself and put a stamp on it. The IRS will use this to mail back your date-stamped copy.
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    Step 8: Verify IRS Address. Go to the IRS website and find the correct mailing address for filing your personal tax return based on the state you live in. Do not guess.
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    Step 9: Mail via Certified Mail. Take your package (cover letter, original form, copy for stamping, SASE) to the post office and send it via USPS Certified Mail with Return Receipt. The green receipt they give you is critical.
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    Step 10: Store Your Proof. When your stamped copy arrives, staple it to your Certified Mail receipt. Store these documents in a secure physical and digital location forever.

Frequently Asked Questions

What documents must accompany Form 83(b)?

You must include the signed 83(b) election form itself and a concise cover letter. It is also standard practice to include a copy of the stock grant agreement, although it is not strictly required by the IRS.

Do I attach the company stock agreement?

Yes, it's a highly recommended best practice to attach a copy of your Restricted Stock Purchase Agreement or other grant document to the 83(b) election form when you file.

How long should I keep proof of mailing?

You should keep your Certified Mail receipt and the date-stamped copy returned by the IRS indefinitely. Consider it a permanent part of your financial records, as you may need it years later when you sell your stock.

Get Personalized Help

Navigating tax decisions can be complex. For tailored advice that fits your specific situation, we recommend consulting with a qualified CPA.

→ Need tailored advice? Email taxhelp@example.com