The 30-Day 83(b) Election Deadline Explained

Of all the rules surrounding the 83(b) election, the deadline is the most unforgiving. You have exactly 30 calendar days from the date your stock is granted to file your election with the IRS. There are no extensions and no exceptions. Missing this window means losing the right to make the election forever.

This guide breaks down exactly how to calculate your deadline, why the postmark date is everything, and the severe financial consequences of being even one day late.

Key Takeaways

• 30 Calendar Days: The clock starts the day after your stock is granted and runs for 30 consecutive days, including weekends and holidays.
• Postmark is Proof: Your filing is considered on time if it is postmarked by the 30th day. This is why using USPS Certified Mail is essential, as it provides a legal proof of the mailing date.
• No Late Filing, No Exceptions: The IRS does not grant extensions or relief for missing the 30-day deadline. Once the window closes, it's closed for good.
• Grant Date is Day Zero: The day you are granted the stock (the 'transfer date') is Day 0. You have until the end of Day 30 to get your form in the mail.

How to Calculate Your 30-Day Deadline

The calculation is simple but must be done with precision. Follow these steps:

1. Identify Your Grant Date: Find the official date of grant in your stock purchase agreement or other grant documents. This is Day 0.
2. Count 30 Calendar Days: Start counting from the day after your grant date. For example, if your grant date is April 1st, your deadline is April 31st.
3. Include Weekends and Holidays: The count does not stop for weekends or public holidays. Every day is included.
4. File On or Before Day 30: You must mail your election on or before the 30th day. To be safe, plan to mail it at least a week in advance to avoid any last-minute issues.

For example, if your stock was granted on June 10th, your 30-day period ends on July 10th. You must have your election form postmarked by a USPS employee no later than July 10th.

The Critical Importance of the Postmark

The IRS considers your 83(b) election filed on the date it is postmarked, not the date they receive it. This is known as the "timely mailing as timely filing" rule. However, this rule only applies if you use the United States Postal Service (USPS). It does not apply to private delivery services like FedEx or UPS.

This is why sending your form via USPS Certified Mail with Return Receipt is the only recommended method. The dated postmark on your Certified Mail receipt is your legal, indisputable evidence that you met the deadline. Without it, you have no way to prove you filed on time if the IRS claims your form was lost or arrived late.

The Consequences of Missing the Deadline

Missing the 30-day deadline is a catastrophic and irreversible error. You permanently lose the ability to make the 83(b) election for that stock grant. This means you will be taxed at ordinary income rates on the value of your shares as they vest. If the company's value increases significantly, this will result in a much larger tax bill compared to what you would have paid by filing the election. The lost tax savings can easily amount to hundreds of thousands or even millions of dollars in a successful startup scenario.

Frequently Asked Questions

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