Following the steps below, you can send pre-filled out 83(b) election forms to your shareholders. All they need to do is sign the form and mail it to the IRS using the instructions provided. Some notes regarding these elections:
- 83(b) elections are only applicable to Restricted Stock Awards (RSA), not Restricted Stock Units (RSU).
- 83(b) elections for early exercises of ISOs are only applicable for AMT purposes.
- The election must be filed within 30 days from the grant/exercise date. There is no recourse if this deadline is missed.
- Go to Document Management > Automation in the left menu, then select the option to create a new workflow. On step one, name the workflow and select the type. Note that you may need to select Common Issuance or Exercise, depending on if the RSA was a result of an early exercise or originally issued as common.
- Select the transaction(s) that you want to issue the form for.
- Select all the transactions, then go to Documents > Apply Template, and select the 83(b) Election template.
- Add an approval on step four so the workflow can be executed.
- On the final step you can click on the document title to preview it. If everything looks good, go ahead and click Execute in the upper right hand corner.
Once executed the PDF will be emailed to the shareholder. A copy will also be saved on the issuance page in Capshare.
When the shareholder receives the forms, they need to print, sign, and mail the forms as provided in the instructions.
Note that a blank version of the form can be downloaded here: 83(b) Election Form.