How to File an IRS 83(b) Election: Deadline, Mailing, and Contents

To file an 83(b) election, mail a signed election statement to the IRS service center that handles your Form 1040 within 30 days of the date the restricted stock or other property was transferred to you. You can use IRS Form 15620 or a custom letter that contains the same required information. The address depends on the state you live in, and the deadline has no extensions.

Where to Mail Your Election

The IRS routes 83(b) elections to one of three service centers based on where you live, not where your employer is located. Because you are not sending a payment with an election, use the “no payment” address for your region.¹

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 and APO/FPO addresses, or if you file Form 2555 or are a dual-status alien, send your election to Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0215.¹

The IRS has begun offering electronic submission of Form 15620 through its online account system, which sidesteps the mailing question entirely. Addresses can also change. Confirm both the address and the current filing options on irs.gov before you send anything.

The 30-Day Deadline

You have 30 days from the transfer date to get your election postmarked. No extensions. No hardship exceptions. No appeal.² Miss the window by a day and the election is permanently lost for that grant.

The trigger is the date the property was transferred to you. Not the date you signed your offer letter. Not the date the paperwork reached your inbox. Not the date you decided to file. For restricted stock, the transfer date is often the date the board approved the grant, which can be days or weeks earlier than the paperwork you actually receive. Confirm the transfer date with your company before you start counting.

If the 30th day falls on a Saturday, Sunday, or legal holiday, the deadline shifts to the next business day.³ That is the only slack you get.

What the Election Must Contain

You have two options for the statement itself. IRS Form 15620, introduced specifically for this purpose, walks you through each required field and reduces the chance you accidentally leave something out. A custom letter also works, as long as it includes everything the statute requires.²

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 of the property on the transfer date, 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 making the election under Section 83(b) of the Internal Revenue Code.

Sign it. Unsigned elections are not valid.

Valuing the Shares

For publicly traded stock, use the market price on the transfer date. For private company stock, the IRS expects a value determined without regard to restrictions that will eventually expire, which generally means a formal valuation.² Most startups already carry a 409A valuation for option-pricing purposes, and your company should be able to give you that number. At very early stages, the fair market value may be close to zero, which is often the whole reason for filing an 83(b) in the first place.

Mail It So You Can Prove You Filed on Time

The IRS does not send a confirmation when it receives your election. Proof of timely filing is entirely on you, and the deadline is absolute, so build that proof into how you send it.

Send by USPS certified mail with return receipt requested. The postmark on your certified mail receipt establishes the mailing date, and the green return receipt card confirms delivery.⁴ Keep both.

If you use a private carrier instead, only IRS-designated services qualify for the “timely mailing equals timely filing” rule. Ground shipping does not qualify from any carrier. The approved tiers are:⁵

DHL Express 9:00, 10:30, 12:00, Worldwide, Envelope, and Import Express.
FedEx First Overnight, Priority Overnight, Standard Overnight, 2 Day, and several international options.
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 tiers.

Ask the carrier for written proof of the mailing date. That document replaces the USPS postmark as your evidence.

After You File

Send a copy of the signed election to your employer or the company that issued the property. This is required, not a courtesy, because the company needs it for its own tax reporting.² In the uncommon case where the person performing the services and the person receiving the property are different, both get a copy.

Keep your own copy, along with the certified mail receipt and the return receipt card, with your tax records. Because the IRS does not acknowledge these filings, those documents are your only proof, and they can matter 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. You no longer need to attach a copy of the election to your return, but keep a copy accessible in case of audit.

The Election Cannot Be Undone

Once filed, an 83(b) election is permanent. It cannot be revoked without IRS consent, and the IRS almost never grants that consent.⁶ The only realistic ground for revocation is a mistake of fact about the underlying transaction, such as receiving a different number of shares than you thought. A drop in the stock price, a change of heart, or leaving the company are not grounds.

If you file the election, pay tax on the value at transfer, and then forfeit unvested shares or watch the company fail, the tax you already paid is gone. The statute prohibits any deduction for the forfeiture.⁶ When the fair market value at transfer is close to zero, that risk is small. When the stock already has real value at grant, run the numbers on the tax you would owe today, and decide whether you can absorb that cost if the shares end up worthless.

What Happens If You Miss the Window

Without a timely 83(b) election, you owe no tax at transfer, but you owe ordinary income tax at each vesting event on the difference between the fair market value at that vesting date and what you originally paid.⁷ For a company whose value is rising, that means a growing tax bill each year, at ordinary rates, on shares you generally cannot sell to cover it. That is the outcome the election exists to prevent, and it is why the 30-day deadline and proof of mailing are worth handling carefully the first time.

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