Form 15620 – 83(b) Election Filing and the 30-Day Deadline

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The 30-day clock is the whole game with an 83(b) election. Form 15620 (Rev. April 2025) is the IRS form for making a Section 83(b) election under IRC § 83(b), and it must be filed within 30 calendar days of the property transfer date you enter in Box 3, with no extensions per Treas. Reg. § 1.83-2(b). If Day 30 lands on a weekend or federal holiday, you get the next business day, and that is the only grace you get.

Using the form is voluntary; a compliant written statement under Treas. Reg. § 1.83-2 is just as valid. Either way, the election is filed on paper by mail to the IRS office where you file your return, the income inclusion in Box 8 equals Box 6(c) minus Box 7(c), and a signed copy goes to the service recipient. Send it certified mail with return receipt so you hold a dated postmark.

Key Takeaways

• You must file your 83(b) election within 30 calendar days of the transfer, not the grant approval meeting, and there are no extensions. If Day 30 lands on a weekend or federal holiday, you get the next business day.
• You can make the election by filing a written statement that satisfies Treas. Reg. § 1.83‑2 or by using Form 15620. Use of Form 15620 is voluntary; both methods are equally valid.
• Form 15620 is filed on paper. Submit the completed and signed form by mail to the IRS office where you file your federal income tax return; there is no electronic filing channel for this election.
• Give a signed copy to your employer or service recipient, and if someone else is the transferee, give that party a copy too. Keep proof of timely filing.
• Send by certified mail with return receipt so you have a dated postmark, and preserve your exact fair market value and price calculations in your workpapers.

What is Section 83(b)?

When you receive property for services and it is still at risk of forfeiture, the default is to include income when that risk lapses. An 83(b) election flips that timing. You include the property’s fair market value at transfer, minus any amount you paid, in your income now, and your capital‑gains holding period starts immediately.

If the company grows, more of the future upside can be taxed at long‑term capital gains rates when you eventually sell. The election is generally irrevocable and must be filed within 30 days of transfer.

When 83(b) usually applies, and when it does not

• Applies to restricted stock and to early‑exercised options that settle into unvested shares, since you hold property that can be forfeited.
• Does not apply to unexercised stock options or to RSUs at grant, because there is no transferred property yet.
• If you forfeit the shares later, you usually cannot recover the tax you already paid on the election.

Why Form 15620 matters

Form 15620 gives you a standardized way to make the election, so your statement includes the core elements Regulation 1.83‑2 expects, such as your info, a description of the property, transfer date, restrictions, fair market value, and amounts paid. The form embeds a penalty‑of‑perjury signature, which cleans up evidentiary quality without changing the 30‑day deadline.

Standardizes the election, reduces avoidable defects

Before Form 15620, most taxpayers mailed a custom letter. You can still do that if you prefer. Using the form simply reduces omissions because it mirrors what the regulations require for a valid election. The IRS also clarified in 2016 that you do not have to attach a copy to your return anymore, so standard documentation plus solid recordkeeping is the winning combo.

Filed on paper by mail, with audit‑ready proof

Submit the completed and signed Form 15620 to the IRS by mail, specifically to the office where the person performing the services files a federal income tax return. There is no electronic filing channel for the election, so plan your mailing around the 30‑day window. Use certified mail with return receipt so you capture a dated postmark you can rely on if the timing is ever questioned.

Why precise calculations matter on paper

Because the form sets your income inclusion and your basis, accuracy is everything. Carry your per‑item fair market value and price paid through to the Box 6(c), Box 7(c), and Box 8 totals exactly, and keep the supporting math in your workpapers. Print, sign, and mail by a trackable service within the 30‑day window, and save both your mail proof and your calculations.

Key changes vs older election statements

Employer or service recipient details, now clearly captured, but optional on the form

Regulation 1.83‑2 has always required you to furnish a copy to the person for whom services were performed, and Form 15620 makes room for that entity’s name, TIN, and address. The form labels this Box 9 as optional for making a valid election, however you still must give copies to the employer and, if different, the transferee. Using accurate legal names and addresses helps payroll and information reporting downstream.

Penalty‑of‑perjury signature

Form 15620 requires you to sign under penalties of perjury, affirming your entries are true and complete, and an unsigned or undated election is invalid. That pushes you to verify grant details, restrictions, fair market value, and dates before you file. The 30‑day deadline still applies. If you discover a material error later, talk to your advisor fast because revocation generally needs IRS consent and is narrowly available.

No more attaching to your return

The IRS finalized a change in 2016, removing the old requirement to attach a copy of the election to your income tax return. You still file the election with the IRS within 30 days and give a copy to your employer, and you should keep excellent records. This also means you can e‑file your tax return normally later in the year.

Who should consider filing

You, if you are a founder, early employee, or contractor receiving stock that can be forfeited and your company value is low today with real potential to grow. Filing now can front‑load a small amount of ordinary income and start the capital‑gains holding period, which can improve outcomes if the company appreciates. Be sure you can afford the current tax, accept the forfeiture risk, and align with your plan documents.

• You received restricted stock or you early‑exercised options into unvested shares.
• Fair market value at transfer is low, so the ordinary income you include now is small.
• You expect meaningful appreciation before vesting and eventual sale.
• You can meet the 30‑day deadline and keep airtight documentation.

Timing rules and the 30‑day deadline

The deadline is measured in calendar days. Day 1 is the transfer date. Count each day straight through, including weekends and holidays. If Day 30 is a Saturday, Sunday, or legal holiday, you get the next day that is not a weekend or holiday. Miss the window and the election is invalid.

Getting the transfer date right

The clock starts when you receive substantially nonvested property and become the beneficial owner, for example when shares are issued to you after an early exercise. It is not the vesting start date or the board approval date. Anchor your timeline to the stock ledger, issuance paperwork, or transfer records.

Late or close‑call situations

There is no extension for an 83(b) election. If you are up against Day 30, send a signed paper Form 15620 by a trackable service that provides a dated postmark or equivalent, and keep the receipt. If it is late, you default to ordinary income at vesting. Talk with an advisor about any fallout for payroll and reporting.

How to file by mail, step by step

• Complete and sign Form 15620 with your name, TIN, address, description of property, transfer date, restrictions, fair market value, and price paid.
• Mail it to the IRS office where you file your federal return. Use certified mail or a courier that gives you tracking, and retain the dated proof.
• Provide a copy to your employer or service recipient, and to the transferee if that differs.
• Keep a full copy set in your permanent records, including proof of timely mailing.

Completing the form accurately

• Box 1 through Box 5: enter your name, TIN, and address, a property description with quantity, the transfer date, the taxable year that contains it, and the restrictions.
• Box 6(a) through 6(c): per‑item fair market value, quantity, and total, valued without regard to any lapse restriction such as vesting.
• Box 7(a) through 7(c) and Box 8: per‑item price paid, quantity, and total, then the income inclusion equal to Box 6(c) minus Box 7(c).
• Sign and date under penalties of perjury before mailing; an unsigned or undated election is invalid.

Precision points to watch

For low‑priced shares, micro‑prices and large unit counts are where math errors creep in. Keep a detailed spreadsheet with precise per‑share and extended totals so the Box 8 inclusion ties out exactly. Save your computations alongside the filed form, and store a copy in two places so your records survive a lost file.

Why paper filing protects your election

Method	When to use it	What to watch	Proof to keep
Form 15620 by mail	The IRS‑standardized way to make the election	Mail timelines, make sure you get a dated postmark within 30 days	Certified mail receipt or courier tracking plus a copy of the signed form
Written statement under Treas. Reg. § 1.83‑2	You prefer a custom letter; it remains equally valid	Include every required element, sign under penalties of perjury, mail within 30 days	Certified mail receipt or courier tracking plus a copy of the signed statement

Sources for process and proof: the Form 15620 instructions and Treas. Reg. § 1.83‑2.

Information you must include on Form 15620

Form 15620 walks you through the required content. You will enter:

• Your name, TIN, and address.
• A description of the property and quantity.
• The transfer date and the tax year that includes it (the year of transfer, not the later year you expect the shares to vest).
• The restrictions that apply, for example, forfeiture if you depart before vesting.
• The fair market value per item (determined without regard to any lapse restriction, such as vesting), the quantity, and the total fair market value.
• The price paid per item, the quantity, and the total paid.
• The net amount, fair market value minus price paid, to include in income. This figure cannot be negative, so if the price you paid exceeds fair market value at transfer, the amount to include is zero rather than a deductible loss.
• Optionally, the service recipient’s name, TIN, and address.
• A penalty‑of‑perjury signature and date.

Tip, Box 9 for the employer or service recipient is optional for validity, but you must still furnish copies as required by the regulations.

Coordinate with your employer and payroll

Send your filed election to the company right away, so payroll and equity records reflect inclusion at transfer. If there is immediate taxable income, expect wage reporting, and if applicable, withholding. Keep your certified‑mail proof and postmark with the grant agreement and the stock ledger entry, so future basis reporting matches the election.

Tax impact, risks, and basis tracking

An 83(b) election accelerates ordinary income to the transfer date and sets your basis then. Appreciation after that lives in capital gains, so if you hold more than a year before selling, you aim for long‑term capital gains treatment on the spread above your basis. The risk is real, if you forfeit or the value drops, there is no general refund of the ordinary income you recognized because of the election. Tie your FMV to a defensible valuation and keep the workpapers.

Recordkeeping and proof

Treat proof like part of the filing itself. Keep:

• Your executed Form 15620 or compliant statement.
• The valuation and all calculations used for fair market value and totals.
• The original certified mail receipt and tracking that documents your postmark date.
• Evidence that you furnished a copy to the employer and, if different, the transferee.

The IRS processes elections and associates them with your account, and their own guidance underscores that a Form 15620 or a compliant written statement is acceptable if filed within 30 days. Your records are your safety net later, so keep the filed form and proof of timely filing until you sell the property and the statute of limitations on that sale year has closed, not just the usual three to seven years.

Common pitfalls to avoid

• Missing the 30‑day deadline because you counted from the wrong date.
• Relying on a board minute or vesting start instead of the true transfer date.
• Forgetting to send a copy to your employer.
• Rounding micro‑prices or fudging totals instead of carrying exact per‑item math to Box 8.
• Weak documentation that fails to tie out FMV, totals, and timing.

Practical next steps

1) Calendar your deadline from the actual transfer date, then plan to file within the first 7 to 10 days. 2) Choose Form 15620 or a compliant written statement under Treas. Reg. § 1.83‑2. 3) Gather valuation support and verify your grant details, restrictions, and quantities. 4) Mail the election, send a copy to your employer, and save your proof in two places. 5) Update your basis tracker and confirm payroll reporting. For complex cross‑border situations or state rules, involve counsel early.

Real‑world example, early exercise

You early‑exercise 100,000 options at $0.05 when FMV is $0.05, and the shares are unvested. You file an 83(b) within 30 days, so ordinary income is effectively zero, your basis is $5,000, and your capital‑gains clock starts now. If those shares are worth $1.00 at vest and you eventually sell after a year, the spread above $5,000 can be eligible for long‑term capital gains. Mail the signed form and keep your exact per‑share math in the file so the Box 8 inclusion ties out at zero.

If you run an accounting firm, this is where delivery discipline shows. Standard checklists, SOPs for 83(b) support, and tight documentation reduce deadline risk and client stress. If you need trained offshore capacity that follows your workflow and maintains U.S. standards, Accountably can integrate teams into your systems with review protection and clear SLAs, so your staff is not firefighting on Day 29.

What the rules actually say, in plain English

• The election must be filed within 30 days.
• You file it with the IRS office where you file your return.
• You give a copy to the employer and, if different, to the transferee.
• Your statement must include who you are, what you received, when, any restrictions, fair market value, and what you paid.
• The requirement to attach a copy to your tax return has been removed, but you must keep records.

Conclusion

If you want the upside of equity without a panic sprint on Day 30, plan your 83(b) workflow now. Decide whether you will use Form 15620 or a compliant written statement, and make sure your facts and math are captured precisely. Mail the signed election within 30 days, send a copy to your employer, and keep bulletproof proof. Those simple habits give you a clean holding‑period start and fewer surprises at sale.

Sources and quick references

• IRS Form 15620, Section 83(b) Election (Rev. April 2025), with instructions and the weekend rule under IRC § 7503.
• Internal Revenue Code § 83(b)(2), setting the 30‑day filing deadline measured from the property transfer date.
• Treasury Regulation § 1.83‑2, timing, content, the written‑statement alternative, and furnishing copies to the employer and, if different, the transferee.
• Treasury Regulation § 1.83‑2(f) and Revenue Procedure 2006‑31, guidance on revoking an 83(b) election with IRS consent.
• IRS Publication 525, Restricted Property section, for the tax consequences of substantially nonvested property transferred for services.

Common Mistakes We See Every Season

Most defective 83(b) elections I see fail on process, not theory. Here are the ones that recur across grant seasons, with the fix we bake into the workflow.

Reusable Checklists

These are copy-paste ready for your SOP library. Adapt the wording, keep the sequence, and they will hold up under review.

Keep 15620 Season From Stalling

Form 15620 elections do not arrive on a tidy calendar. Every restricted-stock grant, early exercise, or founder issuance starts its own 30-day clock under IRC § 83(b)(2), and that window cannot be extended. When several land across a single quarter, each one carries a separate transfer date, its own fair market value math, and its own copy-delivery obligation.

The pattern that works is to stop treating each election as an email someone has to remember, and start treating it as a tracked file with a hard due date. A short, repeatable workflow turns a scattered set of one-off deadlines into something a team can run without heroics.

• Log the Box 3 transfer date the moment property changes hands, and set the mail-by date, rolling to the next business day under IRC § 7503 if day 30 is a weekend or holiday.
• Reconcile Box 6(c) fair market value against the Box 7(c) amount paid so the Box 8 inclusion is correct and never recorded as a negative number.
• Confirm the Box 2 description carries quantity, share class, and issuer before the election is signed.
• Build copy delivery into the file: a signed copy to the service recipient, plus a third copy to the transferee when that person differs from the service performer.
• Capture proof of timely mailing and retain it with the filed form until the property is sold.

This is where structured delivery earns its keep. Accountably runs equity-compensation filings as tracked workflow items with documented SOPs, deadline calendaring, and a preparer-to-reviewer check before anything is signed and mailed, so no 30-day window slips. See how our tax execution support keeps event-driven elections on schedule.

FAQs

Can I revoke a Section 83(b) election after filing Form 15620?

Generally, no. Revocation requires IRS consent and is narrow, usually limited to a true mistake of fact about the underlying transaction. If you think a mistake occurred, speak with your advisor immediately.

Do nonresident aliens use Form 15620 for U.S. equity grants?

If a nonresident receives substantially nonvested property in connection with services, they can make an 83(b) election, either by Form 15620 or a compliant written statement under Treas. Reg. § 1.83‑2, and still must meet the 30‑day rule and furnish copies. The election is filed on paper by mail to the IRS office where the service performer files a federal income tax return, so build in extra time when an ITIN or international mail is involved.

How do community property rules affect an 83(b) election?

Community property can affect ownership, basis, and reporting. Many taxpayers obtain spouse consent and align records so equity characterization and basis tracking stay consistent. Because state rules vary, confirm with counsel for your jurisdiction.

How are state taxes handled with an 83(b)?

States often follow the federal timing, but sourcing rules and withholding can differ, especially if you move during vesting. Coordinate with payroll and a state‑savvy advisor to avoid mismatches.

Do I still attach a copy of my 83(b) election to my federal tax return?

No. Since 2016, the IRS removed that attachment requirement. You still file the election within 30 days and keep thorough records.

How do I record exact per‑share prices on Form 15620?

Enter the per‑item fair market value in Box 6(a) and the per‑item price paid in Box 7(a), then carry the totals to Box 6(c), Box 7(c), and Box 8. Keep exact calculations in your workpapers so the Box 8 inclusion ties out.

Compliance checklist you can copy

• Confirm the Box 3 transfer date and start your 30‑day clock.
• Complete Form 15620 or a compliant written statement, sign under penalties of perjury.
• File with the IRS by mail within 30 days, and keep your certified‑mail proof.
• Provide copies to the employer, and, if different, to the transferee.
• Update payroll, equity systems, and basis tracking.