The Race Against The 83(b) Clock
There are three practical issues with filing an 83(b).
- There is no such form on the IRS website. It's not there. The good news is that most companies that allow their employees to exercise stock options early will also provide you with an 83(b) form, which covers the necessary fields and signatures. Your 83(b) election form can typically be found in your option agreement document.
- There is a time limit. You have 30 days from the date of exercise to get your 83(b) election form to the IRS. There is no grace period. If ever there was a time to send a hard copy via certified mail with a return receipt, this is it. As with everything tax-related, documentation is your friend.
- File your 83(b) form with your annual 1040. You should plan to send a copy of your 83(b) election with your 1040 return filed in the year you purchased the stock. Unfortunately this will preclude you from filing your 1040 electronically, but the potential tax savings more than justifies the inconvenience.
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