83(b) Election for founders
Introducing 83(b) election for founders. Founders can now more easily comply and file an 83(b) election with the IRS. This release automatically generates the 83(b) form, instructions on how to file it with the IRS, and an email notification that includes issuance date and days left to file.
Why is it valuable?
Individuals filing an 83(b) election may potentially reduce their tax obligations by choosing to pay taxes on the fair market value (FMV) of their securities at the time of granting rather than after vesting.
How does it work?
83(b) for founders is available in all Carta plans. This feature will be automatically available for all founders that have accepted founder stock within the last 30 days.
- After accepting a stock certificate in Carta, Carta will automatically generate an email notification and 83(b) form.
- To view the 83(b) form, log-in to your Carta account, open the applicable certificate, and click the 83(b)elections tab
- Provide additional information, including your social security number and address. You can also choose to manually enter a different fair market value (FMV).
- When completed, you can download, print, and make additional edits.
- Before mailing to the IRS, sign and date. Make sure to upload a signed copy of the form and add the date mailed on Carta. This makes it easy for you to remember and access a record of this filing - conveniently saved in your Carta account.
How do I learn more or get help?
To learn more about 83(b) for founders, check out this support article or reach out to your Account Manager for a demo.