Section 83(b) election is a notice that founders or stockholders send to the IRS letting them know that your shares should be taxedon the date the company issued the shares rather than on the vesting date. 83(b)elections are only applicable for stock that are subject to vesting.
The notice is generally straightforward as it includes the taxpayer's information, Company information, amount of shares etc. The notice also includes a US taxpayer identification number. The IRS has not provided guidance on how non-US taxpayers/founders should make the 83(b) election. Currently, there are two options available depending on the status of the non-US taxpayer.
1. If the Non-US taxpayer has already applied: In this case, the taxpayer should enter “Applied For” on the Tax ID line item. Since it can take weeks for the taxpayer to receive the ID, you’d want to make sure that you send the notice on time.
2. If the Non-US taxpayer ha not applied: in this case, the taxpayer should enter "N/A" or "Not Applicable."
Founders and shareholders should always consult their tax advisors in order to determine the adequate processes for their specific circumstances.
