---
title: What is an 83(b) form?
description: Explanation of IRS 83(b) form.
---

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# What is an 83(b) form?

The 83(b) election is a tax form filed with the IRS that allows someone who receives restricted stock or equity subject to vesting (usually in a startup or private company) to pay taxes on the total value of the equity at the time of grant, rather than waiting until the shares vest.

When someone (typically a founder or early employee) receives stock that vests over time, the IRS treats each vesting event as taxable income. Without filing an 83(b) election, you pay taxes on the fair market value of the shares as they vest—which could mean higher taxes if the company grows in value.

By filing an 83(b) election, you're choosing to pay taxes up front on the current (often very low) value of the unvested stock. This can save significant money if the value increases later.

For example, if you’re granted 10,000 shares that vest over 4 years and the current price is $0.01/share, (total value of $100). When you file the 83(b) election, you will only pay income taxes on the $100 value, regardless of the value when the shares vest.

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