An 83(b) election is a filing made within 30 days of receiving restricted stock or a profits interest that elects to be taxed on its value at grant rather than at vesting, which for early-stage equity usually means paying tax on a small amount now instead of a large amount later.
The 30-day deadline has no extension. If the stock later becomes worthless, the tax paid is not refundable, which is the trade-off.
Why it matters: for founders and early employees, a missed 83(b) can turn a tax-free grant into a large ordinary income event at vesting.
Read more: the 83(b) election explained.
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