You have exactly 30 days to mail this document to the IRS. Miss the deadline, and you risk owing the government massive taxes on phantom income. Grab the exact swipe file below and get it sent today.

An 83(b) election is a formal letter to the IRS proving you choose to be taxed on your shares at grant, rather than later when they vest. Doing this locks in your tax basis when your pre-seed company is worth essentially zero.

• Rule: Always mail two copies via USPS certified mail with a return receipt requested.
• Warning: Missing the strict 30-day deadline is irreversible and can destroy your personal financial upside.

Print two copies of the cover letter and two copies of the election form found below. Mail them to the IRS service center for your state. Always include a self-addressed stamped envelope so the clerk can return your date-stamped copy directly to you as proof of receipt.

The asset

[Date]

Department of the Treasury
Internal Revenue Service
[IRS Service Center Address for your state]

RE: Section 83(b) Election for [Your Full Name]

To Whom It May Concern:

Enclosed please find an original and one copy of an election under Section 83(b) of the Internal Revenue Code of 1986, as amended, filed by the undersigned taxpayer.

Please date-stamp the enclosed copy of this letter and the copy of the election and return them to me in the enclosed self-addressed stamped envelope.

Sincerely,

[Your Signature]
[Your Printed Name]
[Your Full Address]
[Your SSN]

--- PAGE BREAK ---

ELECTION UNDER SECTION 83(b)

The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in gross income the excess, if any, of the fair market value of the property described below at the time of transfer over the amount paid for such property.

1. The name, address, and taxpayer identification number of the undersigned are:
Name: [Your Full Name]
Address: [Your Full Address]
SSN: [Your SSN]

2. Description of the property with respect to which the election is being made:
[Number of Shares] shares of Common Stock of [Company Name], a [State of Incorporation] corporation.

3. The date on which the property was transferred is:
[Date of Grant]

4. The taxable year to which this election relates is:
Calendar year [Current Year].

5. The nature of the restriction(s) to which the property is subject is:
The shares are subject to a repurchase right in favor of the company at the original purchase price if the taxpayer stops providing services to the company. This right lapses over time.

6. The fair market value of such property at the time of transfer (determined without regard to any restriction other than a restriction which by its terms will never lapse) is:
$[Total Value of Shares, e.g., 10.00]

7. The amount paid for such property is:
$[Amount Paid, e.g., 10.00]

8. A copy of this statement has been furnished to the company.
Signature: ______________________
Date: [Date]

Industry benchmarks note that 83(b) filings actually trip up 90% of first-time founders, leading to irreversible mistakes. Getting this right early is non-negotiable.

Sample math.
If you receive 10,000,000 shares at a par value of $0.00001, your total Fair Market Value (FMV) is $100. By paying the $100 upfront, your tax liability is calculated on this baseline. If your valuation grows to $10,000,000 later, you do not pay ordinary income tax on the $9,999,900 difference during the vesting period. Your tax exposure remains fixed at the initial $100 baseline.