The 83(b) election: thirty days, no extension, and filing without an SSN

Founders of a corporation usually receive their stock subject to vesting: it's theirs, but the company can buy it back at cost if they leave early. The tax code treats stock that can still be taken back as not yet received, and taxes it as it vests, at its value on each vesting date. If the company raises money in its second year, that value can be real, and the tax on it is due in cash on stock you can't sell. The 83(b) election avoids that, and it has a 30-day deadline.

Filing under section 83(b) tells the IRS to tax the whole grant now, at its value on the grant date, instead of piece by piece as it vests. For a new company that value is tiny, often a fraction of a cent a share, and if you pay that price for the shares, there's nothing to tax. Any growth in value after that is taxed as a capital gain when you eventually sell, not as ordinary income as the shares vest.

The US taxes payment for work based on where the work is done, so a founder working entirely abroad may owe the US little or nothing as the stock vests. Your home country may still tax it, though, and a founder who later moves to the US would owe US tax on what vests after the move. That's why most advisers still recommend the election for founders abroad.

Anyone who receives stock that can be forfeited, which is what vesting means: founders, and employees or advisers who exercise options early. The election has to be made within 30 days of the grant, counted from the date the stock is issued. There's no extension, no late election and no allowance for not knowing. Stock that's fully vested when it's issued doesn't need one.

1. 1

   Complete Form 15620

   The IRS introduced this form for the election in November 2024 and revised it in April 2025. It replaces the letter most people used before, though a letter that meets the regulations still works. It asks for your details, the stock, the date it was transferred, its restrictions, what you paid and the fair market value.

2. 2

   Send it to the IRS

   The form's instructions say to post it to the IRS office where you file your US income tax return. Since 2025 the IRS also takes it online, but that route needs an ID.me account, which needs an SSN or ITIN, so founders abroad without one post it. Use a method that proves the date, such as a tracked courier, and keep the proof with the company's records. It's your only evidence the election was made in time. If day 30 falls on a weekend or a US public holiday, a postmark on the next working day still counts.

3. 3

   Give the company a copy

   The form requires you to give a copy to the company you work for, which keeps it with its stock records. Since 2016 you haven't had to attach a copy to your tax return, but keep one yourself. The election can't be undone without the IRS's consent.

The form asks for a taxpayer identification number. A founder with no SSN or ITIN can still file on time. Advisers' usual practice is to write "Applied For" in that box, enclose a copy of a Form W-7 ITIN application, and update the IRS once the number arrives. Writing "Foreign" or N/A instead risks the IRS not processing the election, which is why advisers recommend applying for the ITIN. The ITIN guide explains the application.

Nothing can be done for that grant. The stock is taxed as it vests, at its value then. The usual fixes are to speed up vesting of what's left, which investors may not like, or to accept the tax. It's far easier to set the reminder on the day the stock is issued.