Founder stock tax-election guide

83(b) Election: Deadline, Form 15620, and Filing Checklist

A Section 83(b) election can be time-sensitive when substantially nonvested property is transferred for services. Use official IRS instructions, confirm the facts with a qualified tax professional, and keep filing proof with the company record.

Open Official IRS Form 15620
Decision checklist
  • Confirm the property transfer date from signed records
  • Count the 30-day federal filing window
  • Complete and sign Form 15620 or a qualifying statement
  • Mail the election, send required copies, and retain proof
Why now

The filing window starts with the property transfer, not when a reminder arrives.

The IRS instructions make the timing unusually strict: no later than 30 days after transfer. If day 30 falls on a Saturday, Sunday, or legal holiday, the next non-weekend, non-holiday postmark rule may apply. Because eligibility, valuation, restrictions, and tax consequences depend on the actual transaction, founders should involve qualified tax or legal counsel early.

Quick answer

For founders and other service providers who receive substantially nonvested property, an 83(b) election can choose to include the current spread, if any, in income at transfer instead of waiting until the property vests. The IRS says the signed election must be filed no later than 30 days after the property transfer. Form 15620 may be used, it is mailed to the IRS office where the filer submits a federal income tax return, and required copies must also be provided to the service recipient and, when different, the property transferee.

What founders are asking at 11pm

Does an 83(b) election apply to my founder stock?

Which date starts the 30-day clock?

What information belongs on IRS Form 15620?

Where do I mail the election and who else needs a copy?

What proof should I keep after filing?

What should I do if the deadline may already have passed?

Questions to answer before the 30-day clock runs out

Use the official form and your transaction documents to confirm each answer. SparkLaunch can organize dates, reminders, and proof, but it cannot decide whether an election is right for you.

Transaction review

Eligibility and timing

  • Was substantially nonvested property transferred in connection with services?

  • What date do the signed stock or property records identify as the transfer date?

  • Has a qualified tax professional reviewed whether an election fits this transaction?

IRS Form 15620

Form and delivery

  • Do the name, TIN, address, property description, restrictions, value, and amount paid match the records?

  • Which IRS office receives the filer's federal income tax return?

  • Which service recipient and transferee must receive copies?

83(b) workflow

Proof and company records

  • Is there dated evidence of mailing or delivery?

  • Are the signed election, required copies, and proof stored with the stock records?

  • Can the company retrieve the evidence later for tax, counsel, or diligence review?

Result states

Confirm eligibility now

The property transfer is recent, but the founder has not confirmed whether Section 83(b) applies or what value and restrictions belong on the election.

Next move

Take the signed transaction documents and transfer date to a qualified tax professional immediately.

Ready to file and document

Eligibility and form details have been reviewed, the deadline is still open, and the filing destination and copy recipients are known.

Next move

Sign and mail the election, send required copies, and preserve dated proof with the stock records.

Deadline may have passed

The transfer date appears to be more than 30 days ago or the filing evidence is missing.

Next move

Do not assume the deadline can be extended. Ask qualified tax counsel to review the facts and available options.

Choose the next 83(b) step

Estimate the potential deadline

Use the public date tool as a reminder, then confirm the result against IRS rules and your transfer records.

Open deadline tool

Use the official election form

Read the current IRS Form 15620 instructions before preparing or mailing an election.

Open Form 15620

Connect the stock record

Keep founder stock, vesting context, election evidence, and cap table records together.

Review cap table workflow

Frequently asked questions

When substantially nonvested property is transferred in connection with services, Section 83(b) lets the service provider elect to include the current excess of fair market value over the amount paid, if any, in gross income at transfer rather than when the property later vests. The decision can have important tax consequences, so it should be reviewed with a qualified tax professional.

IRS Form 15620 says the person performing services may file when substantially nonvested property is transferred in connection with those services. The form gives employees and independent contractors as examples. Whether a particular founder stock transaction qualifies is a tax and legal question.

The IRS says the election must be filed no later than 30 days after the date the property was transferred. If day 30 falls on a Saturday, Sunday, or legal holiday, a timely postmark on the next day that is not one of those days may qualify under Section 7503.

The current Form 15620 instructions say to mail the completed and signed form to the IRS office where the person performing the services files a federal income tax return. The filer must also provide a copy to the service recipient and, if the filer and property transferee differ, to the transferee.

The IRS instructions say an 83(b) election generally may not be revoked without IRS consent. Do not file based only on a calculator or generic example; review the actual transaction with qualified tax counsel.

Keep the signed election, the final form or statement, copies sent to required recipients, and dated mailing or delivery evidence with the founder stock and company records. SparkLaunch can help organize workflow evidence but does not confirm IRS acceptance.

Sources

Public sources for this guide were checked on July 9, 2026.

Keep going

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Treat the deadline and proof as one workflow

A reminder is not filing evidence. Confirm the transaction, prepare the election with professional guidance, send every required copy, and keep proof beside the founder stock record.

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