A Section 83(b) Election is a statement written on a piece of paper (there is not a special form to fill out). Once the appropriate information is written, copies must be sent to the following:
- the IRS office where you file your return (this must be done within 30 days after you receive the stock)
- your employer (if they are the company that granted the stock)
- any other individual that the stock may have been transferred to by your employer per your request
You will also need to include the election information when you file your income tax return for that year. You can include this in the TaxACT program and still electronically file the return.
- From within your TaxACT return (Online or Desktop) click on the Federal Q&A tab
- Click Miscellaneous Topics to expand the section and then click Additional Information for Electronic Filing (the last one in the list)
- Click on Electronic Filing Notes and Explanations, then Continue to enter your election explanation
This will electronically file with the federal return, but will not be transmitted to the state.
Information on making the Section 83(b) election can be found in IRS Publication 525 Taxable and Nontaxable Income
in the subsection regarding Restricted Property (under the Employee Compensation section).