How to File an 83(b) Election Online

Attorney and CPA Chad D. Cummings explains how to file an Section 83(b) election in this presentation. Under Section 83(b) of the Internal Revenue Code, a person who receives property in connection with the performance of services that is subject to a substantial risk of forfeiture can elect to recognize the fair market value as income at the time of receipt rather than at each vesting date. This election accelerates the taxable event but can convert future appreciation from ordinary income to capital gains, delivering substantial tax savings when the property’s value at grant is low relative to its expected future value, such as with early-stage founder stock. However, the election is irrevocable, must be filed with the IRS within 30 calendar days of the transfer with no extensions, and carries real risk if the property is later forfeited or declines in value. This presentation covers when the election makes strategic sense, the interaction with state taxes, common pitfalls, and why professional guidance from a licensed attorney and CPA is essential before filing. Learn more: https://www.cummings.law/redomestication/