Section 83(b) Election Form

The Section 83(b) election allows an employee to change the treatment of a restricted stock grant. With this election (which will be filed with the IRS), the employee is electing to pay tax on any discount from fair market value for shares of restricted stock at the time of acquisition rather than when the shares vests. Generally at the beginning of a new corporate endeavor, the shares of the new company will be valued close to zero and founders will often elect to purchase these shares at fair market value. (continued ...)