united-states business tax-law corporate-tax-laws
What is the 83b Election postmark filing deadline?
<p>I am getting mixed opinion on how the 83b deadline is interpreted and need clarification, due to the potential financial implications.</p>

<p>Does the 83b election need to be filed 30 days beginning on the day stock was issued, or 30 days with the clock count starting the day after the issuance.</p>

<p>Which scenario is correct?</p>

<p>Scenario A</p>

<p>Date of issuance: January 1</p>

<p>Postmark Deadline: January 30</p>

<p>Scenario B</p>

<p>Date of issuance: January 1</p>

<p>Postmark Deadline: January 31</p>

<p>The rule is that the Section 83(b) election must be filed <em>within</em> 30 days <em>after</em> the date the property (stock, in this case) is "transferred". Several terms are somewhat tricky here: </p>

<p>"Filed" means postmarked. </p>

<p>If the 30th day following the transfer of property falls on a Saturday, Sunday or legal holiday, the election will be considered timely filed if it is postmarked by the next <em>business</em> day.</p>

<p>"Transferred" does not necessarily mean "issued". More likely it's the date of <em>grant</em> that controls.</p>

<p>Finally, check your state laws - a similar (or different) procedure may be required.</p>
