How To Create 83(b) Election Using Shareholder-fill Out Form?

With the new 83(B) Election, recipients can pay their taxes on total FMV (Fair Market Value) on restricted securities (including stock options) at the grant issuance date. 

Note: The 83(B) Election feature is only available for premium account holders. Kindly upgrade your account to unlock this feature. 

Once you have issued a grant and generated 83(B) Election, the shareholders have 30 days to mail the form to the IRS (Internal Revenue Service) after grant issuance. 

Here are the steps to follow:

Step 1: Log into your Eqvista account and select the company account. 

On the dashboard, click on “Compliance” on the left-hand side to get a drop-down menu and click on “Form 83(B)”.

Step 2: Here you will see a description of Form 83(B) along with an option to create a form. Then, click on the button “Create Form” on the right-hand side of the page.

Step 3: Then, you will be redirected to the next page where you can begin the process of creating a form. You begin by selecting the option:

• Pre-Filled Form: The form will be filled with shareholder information – Shareholder Name, Address, TIN, and Email. 
• Shareholder-Fill Out Form: The shareholder will receive a form with blank fields to fill in the required information. 

In this case, we have selected the option “Shareholder-Fill Out Form”.

Note: You can also generate 83(B) Election by clicking “Pre-Filled form”. Check out the support article to learn more about the pre-filled form option.

Step 4: After choosing the option, you will be taken to the next page which displays the shareholder details (Shareholder Name and Email) and Fair Market Value. 

The FMV is calculated using 409A valuation performed by a professional expert like Eqvista. To request, add, edit, and share the FMV, check out our support article here! 

If multiple FMVs correspond to different periods in the same issuance year, the system will take the most recent FMV. 

Note: You can edit the shareholder and FMV details by clicking “Edit”. To know how to edit the details in the form, check out the support article.

When you click “Edit”, a pop-up panel will appear to add the email address as shown below. 

The shareholder’s details entered in the 83(B) form will be saved and automatically updated on the shareholder’s page. Use the “<” and “>” to fill in the details of the next and previous shareholders. 

Once done, click on “Save” and “X”  at the top-right to close the panel.

After checking and adding the missing details, click “Next” to go to the following page. 

Step 5: Here, you can see and review the list of grants eligible for the 83(B). 

Note: The grants issued must be Restricted Stock Awards, Common shares, Preferred shares, or Early Exercised options with vesting schedule to be eligible for 83(B) Election. 

Once you have reviewed the grants, click “Confirm and Create”. A confirmation message appears in a pop-up panel, as shown below.

Then, click “Send” to send an email reminder to sign the 83(B) Election.

After generating the form and sending it to the shareholder, you can check the status of the form. Check out our support guide to understand how to track the status of the form.

Then, the shareholder needs to sign the form and send it to the IRS within 30 days of grant issuance. To know more about Eqvista’s processes, check out our support articles and knowledge base. For further queries, get in touch with us!