How to File an IRS 83(b) Election: Deadline, Steps, and Proof

To file an 83(b) election, mail a signed election statement — either IRS Form 15620 or a custom letter containing the required information — to the IRS service center that handles your Form 1040, postmarked within 30 days of the date the restricted property was transferred to you.¹ Send a copy to your employer, keep proof of mailing, and report the income on that year’s return. The IRS has also begun accepting Form 15620 electronically through its online account system, which can replace the paper route.

Start With the 30-Day Deadline

The clock starts on the transfer date of the property, not the day you sign your offer letter, receive paperwork, or decide to make the election. You have exactly 30 days from that transfer date to get the election postmarked.¹ For restricted stock, the transfer date is often the date the board approved the grant, which can be days or even weeks before you receive official documents.

There are no extensions, no hardship exceptions, and no appeals. Miss by one day and the election is permanently lost for that grant. The only small relief: if the 30th day lands on a Saturday, Sunday, or legal holiday, the deadline shifts to the next business day.²

The election is available when you receive property that is not yet fully vested in connection with performing services. The common scenarios are restricted stock grants with a vesting schedule and early-exercised stock options.³

Prepare the Election Statement

You can file on IRS Form 15620, which was introduced specifically for 83(b) elections, or on a custom letter that covers the same ground. Either works. Form 15620 prompts you for each required field, which reduces the risk of leaving something out.¹

Whichever route you take, the statement must include:

Your name, address, and Social Security number or taxpayer identification number.
A description of the property, including the number and class of shares.
The exact date the property was transferred to you.
The fair market value at transfer, determined without regard to any restriction that will eventually lapse.
The amount you paid for the property, if anything.
An explicit statement that you are electing under Section 83(b) of the Internal Revenue Code.

For publicly traded stock, fair market value is the market price on the transfer date. For private company stock, you generally need a formal valuation; most startups already have a 409A valuation on file and can give you the number.¹

Where to Mail the Election

Send the election to the IRS service center that would receive your Form 1040. That depends on the state where you live, not where your employer is based or where the company is incorporated. Because you are not enclosing a payment, use the “no payment” address for your region.⁴

Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0002 — Alabama, Arkansas, Arizona, Florida, Georgia, Louisiana, Mississippi, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas.

Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999-0002 — Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Wisconsin.

Department of the Treasury, Internal Revenue Service, Ogden, UT 84201-0002 — Alaska, California, Colorado, Hawaii, Idaho, Kansas, Michigan, Montana, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, Wyoming.

If you live outside the United States, including U.S. territories, an APO or FPO address, or if you file Form 2555 or are a dual-status alien, send the election to Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0215.⁴

Addresses change. Confirm yours on irs.gov before mailing, and check whether electronic submission of Form 15620 is available to you.

Prove You Filed on Time

The IRS does not send a confirmation when it receives an 83(b) election, so proof of timely filing is on you. Send the election by certified mail with return receipt requested. The postmark on your certified mail receipt establishes the mailing date, and the green return receipt confirms delivery.⁵

If you prefer a private carrier, only IRS-designated private delivery services qualify for the timely-mailing-equals-timely-filing rule, and you must use a specific service tier.⁶ The approved options include:

DHL Express 9:00, 10:30, 12:00, Worldwide, Envelope, and Import Express.
FedEx First Overnight, Priority Overnight, Standard Overnight, and 2 Day, along with several international tiers.
UPS Next Day Air Early A.M., Next Day Air, Next Day Air Saver, 2nd Day Air, 2nd Day Air A.M., and Worldwide Express.

Ground shipping does not qualify. If you use FedEx Ground or UPS Ground and the election arrives late, the IRS treats it as late regardless of drop-off date. Ask the carrier for written proof of the mailing date; that document takes the place of a USPS postmark.

After You File

Send a copy of the signed election to the company that issued the property. This is a requirement, not a courtesy, because the company needs it for its own tax reporting.¹

Keep your own copy of the election along with the certified mail receipt and the return receipt card. Store them with your tax records. Because the IRS does not acknowledge receipt, these documents are your only proof of filing, and they can become important years later when the shares are sold.

Report the income on your tax return for the year of the transfer. The taxable amount is the fair market value at transfer minus what you paid for the property. You no longer need to attach a copy of the election to your return; the IRS eliminated that requirement in final regulations. Keep a copy accessible in case of audit.

What a Missed Deadline Costs

Without an 83(b) election, you owe no tax at transfer, but you owe ordinary income tax each time a portion of your shares vests, measured against the fair market value on the vesting date.⁷ For a fast-growing company, each vesting event becomes its own taxable event at rising valuations, and you owe the tax in cash even though you often cannot sell the shares to cover it. That is the situation the election is designed to prevent.

The Election Is Permanent

Once filed, an 83(b) election cannot be revoked without IRS consent, and the IRS almost never grants it.³ The only realistic ground for revocation is a mistake of fact about the underlying transaction. A change of heart, a drop in the stock price, or leaving the company are not grounds.

The permanence carries real risk. If you file, pay tax on the fair market value at transfer, and then leave before vesting, you forfeit the unvested shares and cannot deduct the tax already paid on them. The same applies if the company fails and the stock becomes worthless.³ For early-stage employees and founders whose shares have a low value at transfer, this risk is small. When the stock already has significant value at grant, calculate the actual tax you would owe and decide whether you can absorb that cost before filing.

1
Internal Revenue Service. Form 15620 Section 83(b) Election
2
Office of the Law Revision Counsel. 26 U.S. Code 7503 – Time for Performance of Acts Where Last Day Falls on Saturday, Sunday, or Legal Holiday
3
Office of the Law Revision Counsel. 26 U.S. Code 83 – Property Transferred in Connection With Performance of Services
4
Internal Revenue Service. Where to File Addresses for Taxpayers and Tax Professionals Filing Form 1040
5
Office of the Law Revision Counsel. 26 USC 7502 – Timely Mailing Treated as Timely Filing and Paying
6
Internal Revenue Service. Private Delivery Services (PDS)
7
eCFR. 26 CFR 1.83-1 – Property Transferred in Connection With the Performance of Services