How To Edit 83(b) Election?

83(B) is a provision under Section 83 tax code that allows founders and shareholders to pay their taxes on total FMV (Fair Market Value) on restricted securities (including stock options) at the grant issuance date.

It also applies to early exercised options, common and preferred shares subject to vesting.  The shareholders have 30 days to mail the form to the IRS (Internal Revenue Service) after grant issuance. 

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

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: Then, you will be redirected to the next page where you can begin the process of creating a form.

Note: To edit the information entered in 83(B) Election, you must first create a form. Check out the respective support article to learn how to create 83(B) using the Pre-Filled and Shareholder-Fill Out form option on Eqvista. 

Step 3: Let’s assume you want to edit the shareholder details on the form. To do this, click “Edit” on the right-hand side as shown below.

By doing this, a pop-up panel will appear where you can change or add the street address, city or town, state, country, ZIP code, TIN, and email address as shown below. 

Note: You must already have a shareholder profile created. By updating the shareholder’s details on the shareholder’s page, the next time the shareholder information will be updated and available in 83(B) form. To know how to update shareholder details, check out the support article.

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.

Step 4: Similarly, you can edit the fair market value by clicking the “Edit” button. 

Note: 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. 

Now you can edit the FMV details such as the effective date and fair market value. 

Once done, click on “Save”.

In addition to the current FMV, you may also enter the FMV in 83(B) form. To add a new fair market value, click the “Add New FMV” button and add details like effective date and fair market value. 

After filling out the details, you can save the information by clicking the “Save” button.

The new FMV entered in the 83(B) form will be saved and automatically updated on the FMV page. The record of the FMV entered in 83(B) form can be seen by clicking “409A Valuation” on the left-hand side menu. 

Note: the FMV of a company is applicable for 12 months after the valuation date unless there is a significant material event. 

Once 83(B) has been generated and sent 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. 

For more information about Eqvista application, check out our support articles or contact us today!