When Does the Clock Start for 83(b) Election?

iEditorial Note: These blog posts represent the opinion of DoNotPay’s Writers, but each person’s situation and circumstances vary greatly. As a result, you should make sure to do your own independent research. Because everyone is unique, our self-help tools are never guaranteed to help with any specific situation. DoNotPay is not a law firm and is not licensed to practice law. DoNotPay provides a platform for legal information and self-help.

When Does the Clock Start for 83(b) Election?

Are you confused about This particular issue, if handled wrong, could be financially disastrous for you and your family.

If you could quickly and efficiently learn about this issue from a trusted online source, would you use it? Let's take a look at when the clock starts for your 83(b) election and show you an easy-to-use solution.

Answering Your Questions About 83(b) Election Start Times by Yourself

You have probably realized by now that finding solutions to your 83(b) election issue is tough at best. You can get 10 different answers from 10 different sources, and it doesn't take long for confusion and frustration to take over. Wondering about when the clock starts on your 83(b) election is no different.

The Function of Your 83(b) Election

By definition, your 83(b) election is to make the grant date, (the date you received the shares in your company) the relevant date not the vesting date. That is to say that you will have some taxable income on the grant date based on the fair market value of the shares.

Section 83 from the IRS governs the time and amount of taxable income you must pay when your company shares become fully vested.

So, What is The Start Time of an 83(b) Election?

The clock actually begins ticking on the date that you receive the shares as a part of your compensation package from your employer. The paperwork you file with the IRS must be postmarked of the date you received the restricted shares or the shares that are not fully vested.

The following are the only exceptions to that 30-day rule:

  • Serving in the armed forces
  • Providing support to the armed services in a combat zone
  • Affected by a presidentially declared natural disaster
  • Affected by military or terrorist actions

Another thing to keep in mind is the way your 30-day period is calculated.

It is counted as 30 days, including weekends and holidays, from the day after the shares were transferred to you.

So far, you may be confused about:

  • When the 83(b) election begins
  • If you owe any taxes based on the fair market price of the shares
  • How the IRS determines the start date of your 83(b) election
  • How the days are counted in your 30-day period

There is a much better way to get information about when the clock starts on your 83(b) election. Let's begin by showing you the best way to go about filing an 83(b) election.

The Best Way to File Your 83(b) Election

Getting everything right from the start is crucial in your 83(b) election. There are too many confusing and frustrating opinions about 'what is and what isn't when it comes to your 83(b) election.

That is why you need the web-based platform that was designed to level the playing field and make things like your 83(b) election go smoothly and efficiently. That's why you need DoNotPay.

Your shares that you were granted as compensation need the same care and attention as the major components in your financial portfolio. Do not trust these services to just anyone. Let DoNotPay handle your 83(b) election, and you can focus on other things in your life.

DoNotPay is the best way to file your 83(b) election and the best place to find information like when the clock starts on your 83(b) election.

Let's look further into DoNotPay.

How to Use DoNotPay for 83(b) Election Information

As soon as you receive your restricted stock shares, go on over to DoNotPay and promptly use their platform to learn about your 83(b) election.

If you want to file an 83(b) election form, but don't know where to start, DoNotPay has you covered in three easy steps:

  1. Enter the email address of the employee/shareholder you want to grant shares to.

  2. Upload a copy of the Restricted Stock Purchase Agreement.

  3. And that's it! We'll email the grantee with a special link so they can access the DoNotPay 83(b) Election Form Filing Product and file their forms automatically. You'll be able to see the completed task on your dashboard, and the grantee will receive a tracking number to track the status of their shipment as well.

No need to worry about missing your 30-day deadline when you use DoNotPay for all your 83(b) election issues.

Why You Should Use DoNotPay

DoNotPay truly is your one-stop, all-inclusive information hub regarding your 83(b) election issues. Take a look at these reasons you can trust the team from DoNotPay;

It’s fastDoNotPay makes sure that your filing is timely and you won’t miss your deadline.
It’s easyDoNotPay makes sure of a hassle-free filling process.
It’s successfulDoNotPay makes sure your filing will go through smoothly and efficiently.

Let DoNotPay handle your 83(b) election issues, so you can relax and do something other than chasing down information and abiding by the timelines.

What Else Can DoNotPay Do?

Letting DoNotPay handle your 83(b) election issues the day you receive your shares or the next day is by far the best way to ease your worries about the clock starting.

Look at these other 83(b) election issues you handle by using DoNotPay:

  1. IRS 83(b) instructions
  2. 83(b) stock options
  3. Late 83(b) election
  4. 83(b) electronic filing
  5. ISO 83(b)
  6. RSU 83(b)

Let DoNotPay watch the clock for you and see to all your 83(b) election needs!

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