It also discusses who may want to make an 83( b) election and how they can do so. Izinketho ezingu 83b zezinketho zokhetho.
A Section 83( b) election is a letter you send to the IRS electing to be taxed on your equity on the date it was granted to you rather than when it vests. Failing to make a timely 83( b) election with the IRS is something that could lead to disastrous tax consequences for a startup company founder.
The 83( b) election is an IRC provision giving an employee or founder the option to pay taxes upfront on the fair market value of restricted equity. To make an 83( b) election, you must complete the following steps within 30 days of your Award.