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Checklist Updated 2026

How to file an 83(b) election, step by step

The letter, the 30-day clock, the line-by-line fields, and the proof you keep, in one checklist. Filing 83(b) is simple, but it is unforgiving, so the order of operations matters.

Restricted stock · Forms & reporting

How hard is it to file an 83(b) election? The filing itself takes an afternoon. The hard part is doing it inside 30 days and keeping proof, because miss either one and the whole tax break is gone with no do-over. The IRS now has an official form for it, Form 15620, and a written statement still works too. Either way the same handful of facts has to be in it, and every line is doing one job. Here is the order of operations and exactly what goes in it.

Caution

You have 30 days from the date the stock is transferred to you. The clock starts at transfer, not at signing your offer and not at vesting. There is no general fix for a late filing, so the moment you have the shares, start the steps below.

The steps

Confirm an 83(b) even applies to you

The election is for stock that is subject to vesting, such as restricted stock awards or early-exercised options. If you have plain RSUs that settle at vesting, there is usually nothing to elect. Check the type of equity first.

Fill out Form 15620 or a written statement

Form 15620 is the IRS’s official 83(b) form; a written statement that says you are electing under Section 83(b) also works. Either one includes the fields broken out below, so the form mostly just turns this checklist into boxes. Use the version your company or a tax professional provides.

File it with the IRS within 30 days

Send the signed Form 15620 or written statement to the IRS service center where you file your return. Mail it in a way that gives you a dated, trackable record of sending, because the postmark is your evidence the deadline was met.

Keep your proof

Save a copy of the signed letter and the mailing receipt. This is the document you may need years later at sale to show the election was made and was timely.

Give a copy to your company

Provide a copy to your employer for their records and payroll. They do not file it for you, but they need to know you elected.

What the letter has to establish, line by line

The whole thing is a short statement that tells the IRS who you are, what stock you got, what it was worth, and that you are choosing to be taxed on that value now. Each field exists to do one of those jobs.

Who is making the election

Your name, address, and taxpayer ID. This ties the election to your return. Plain identification, nothing clever.

A statement that this is an 83(b) election

A line saying you are electing under Section 83(b) of the Internal Revenue Code. This is the sentence that turns a letter into an election.

A description of the property

What you received: the number of shares, the company name, and the type of stock. Enough that the IRS can tell exactly which grant you mean.

The key dates and the restriction

The date the stock was transferred to you, the tax year involved, and the nature of the vesting restriction that puts the stock at risk of forfeiture. This is what explains why you have a choice to make at all.

The two values

The fair market value of the stock at transfer, and the amount you paid for it, if anything. The difference between those two is the amount you are electing to be taxed on now. On early founder stock, that number is usually tiny.

Your signature

You sign and date it. An unsigned election is not an election.

The two values are the whole point

The line that does the real work is the value line. You report what the stock was worth when it was transferred to you, and what you paid. The gap between them is your income for the year under this election.

For a brand-new company, fair market value is often a fraction of a cent a share, and you may have paid right around that, so the gap is close to zero. That near-zero number is exactly why filing 83(b) is so cheap on early stock and so powerful on stock that later climbs.

Caution

The value you put down has to be defensible. For private stock, that usually means a 409A valuation or the price set in your grant. Do not guess a number to make the math look good. If the IRS ever asks, you want a real basis for it.

Use the IRS's current filing instructions

The 30-day window is firm, but the IRS updates the mechanics from time to time, including the official Form 15620 that now sits alongside the long-standing written statement, the exact filing details, and how it expects you to show the election was filed. Follow the IRS’s current instructions for filing the 83(b) election, and keep proof you filed on time. The latest on this is in the 2026 update on filing.

Watch these mistakes

I emailed it. Is that good enough?

Treat the physical mailing and the dated proof as the safe path. The risk with any method is being unable to prove the election was filed on time if the IRS has no record of it. Keep a copy plus a trackable mailing receipt so the timeliness is yours to prove, not theirs to deny.

Do I still report it on my tax return?

Yes. You report the small amount of income from the election on your return for that year. Filing the letter and handling it on your return are two separate steps, and you do both.

What if I paid full fair market value for the shares?

Then the income on the election is zero, because the value at transfer and what you paid are the same. You still file the election. The point of the letter in that case is to start your holding clock at grant and lock in your basis, so future growth is capital gain. A zero-income election is still worth filing, and many early founders are in exactly this spot.

Do I send one letter or one per grant?

One election per grant of stock subject to vesting. If you receive separate grants on different dates, each one starts its own 30-day clock and needs its own election. Do not assume an earlier election covers a later grant.

What is the single most common filing mistake?

Two tie for first. Missing the 30-day window, which has no general fix. And keeping no proof of timely mailing, so that years later at sale you cannot show the election was made on time. Both are avoidable with a tracked mailing and a saved copy, which is why those two steps carry as much weight as the letter itself.

What this means for you

If you just got vesting stock, do not let this drift. Confirm the election applies, complete Form 15620 or a written statement with the fields above, file it with proof, keep the copy, and give one to your company, all inside 30 days. It is a small task with an outsized payoff, and it is one of the rare equity moves where being a week late can cost more than the shares did. When the shares could be worth real money someday, a quick fit check before you file is time well spent.

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