83(b) election example: Form 15620 filled in box by box
A worked Form 15620 for the most common case, founder stock bought at fair market value, with what changes for an early exercise.
Summary
Our example: a founder buys 4,000,000 shares of common stock at $0.00001 each ($40) on November 3, 2026, subject to four-year vesting. Box 6 fair market value is $0.00001 x 4,000,000 = $40; Box 7 amount paid is $40; Box 8 income is $0. That $0 is the point of filing: future growth is taxed as capital gain, not as wages when shares vest. The election must be filed by December 3, 2026.
When the price paid equals fair market value at transfer, Box 8 of Form 15620 is $0 and the election costs no tax today.
| Box 2 property | 4,000,000 shares of Common Stock of Acme Robotics, Inc.Describe class and quantity, as in the IRS example. |
|---|---|
| Box 3 transfer date | November 3, 2026The date you received the shares, not the vesting date. |
| Box 4 taxable year | Calendar year 2026The year that includes the transfer date. |
| Box 6 fair market value | $0.00001 x 4,000,000 = $40Determined without regard to lapse restrictions. |
| Box 7 amount paid | $0.00001 x 4,000,000 = $40What you actually paid. |
| Box 8 income | $0Box 6(c) minus Box 7(c). |
| Deadline | December 3, 202630 days after November 3. |
Why this example is the common case
Founders who buy their shares at formation usually pay the full fair market value, so the election reports $0 of income. Filing costs nothing in tax and protects against wage income later when the shares vest at a higher value.
Check before you sign
Taxpayer name, TIN and address in Box 1; share count and class identical to the purchase agreement; transfer date from the agreement or board consent; the same per-share value in Boxes 6 and 7 when you paid fair market value; signature and date. Then submit online or mail, and send the company its copy.
When to stop
RSUs, unexercised options, a transfer date you are not sure of, day 30 already passed, or a value nobody can support. Those are outside a sample and outside our packet.
Common questions
What goes in Box 5, restrictions?
The forfeiture terms, for example: "Shares are subject to repurchase at the lower of cost or fair market value if the taxpayer stops providing services; 25% vest on November 3, 2027 and the rest monthly over 36 months." Copy them from your stock purchase agreement.
What changes for an early exercise of options?
The property is the exercised, still-unvested shares, Box 7 is the exercise price paid, and Box 6 is the fair market value on the exercise date. For nonstatutory options (NSOs), a 409A value above the strike price makes Box 8 positive and that amount is ordinary income for the year. Incentive stock options (ISOs) work differently: the exercise generally creates no regular income but can create an alternative minimum tax adjustment (IRS Topic 427), so take ISO exercises to a tax professional.
Is Box 9 (company name and TIN) required?
No. The IRS form marks Box 9 as optional; a valid election does not depend on it. You still send a copy to the company.
Prepare my Form 15620 facts
The wizard computes the deadline and Box 8, and stops for RSUs, options, or a missed day 30.
Open checkerRelated guides
Form 15620 for a Section 83(b) election
A practical guide to the IRS Form 15620 fields used in a Section 83(b) election packet.
83(b) election deadline calculator
A source-linked deadline guide for people who already decided to file a Section 83(b) election and need an operational packet before the 30-day window closes.
83(b) election for restricted stock packet
How the MVP handles a simple individual restricted-stock grant after the user has already decided to make the election.
Official sources for this guide
Last reviewed: .