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I am getting mixed opinion on how the 83b deadline is interpreted and need clarification, due to the potential financial implications.

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.

Which scenario is correct?

Scenario A

Date of issuance: January 1

Postmark Deadline: January 30

Scenario B

Date of issuance: January 1

Postmark Deadline: January 31

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

"Filed" means postmarked.

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 business day.

"Transferred" does not necessarily mean "issued". More likely it's the date of grant that controls.

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

  • Woah, it's not business days. – Putvi May 14 '19 at 18:56
  • @Putvi - Unfortunately not; it's 29 regular days, while the 30th day must be a business day, or the period is extended until the next business day. So for example, if the 30 day period ends on the Saturday of Memorial Day weekend, the period is extended until next Tuesday. – Jack Fleeting May 14 '19 at 19:02
  • Do you have anything to prove that? – Putvi May 14 '19 at 19:03
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    @Putvi Basically: Section 83(b)(2) - "An election ... with respect to any transfer of property shall ... be made not later than 30 days after the date of such transfer..."; plus Section 7503 "When the last day prescribed ... for performing any act falls on Saturday, Sunday, or a legal holiday, the performance of such act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday, or a legal holiday." – Jack Fleeting May 14 '19 at 19:07
  • Does that count since the form is also sent to the employer is what I meant. I thought 7503 only applied to things that are only sent to the IRS. – Putvi May 14 '19 at 19:40
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Thirty days after the the first would be the thirty first. The clock starts when you are given the stock, so to be super technical I guess you could say it ends at a specific time on a certain date, but no one is looking that hard into it.

That should be more than enough time.

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