How does a non-US taxpayer make an 83(b) election?

Although the IRS hasn’t issued direct guidance on 83(b) elections for non-U.S. taxpayers, many startup attorneys suggest filing one if shares are received with a vesting schedule. This option allows shareholders to lock in the current market value for tax purposes, potentially reducing tax obligations should they later become U.S. residents. Filing, however, often requires a U.S. Taxpayer Identification Number (TIN), such as an SSN or ITIN, which non-U.S. taxpayers may not have.

Some startup attorneys advice writing “N/A” instead of a TIN. Others also propose applying for an ITIN. However, it should also be noted that non-US founders in this case may not always be eligible for an ITIN. Given the uncertainties around this process, consulting a qualified tax advisor can help individuals decide if filing an 83(b) election is beneficial in their specific case. Exploring available resources and professional guidance can also provide a clearer understanding of these requirements and possible alternatives. For more in-depth instructions around applying for ITINs, see the IRS website.

For further details, speaking with a legal or tax professional is recommended to address specific questions about 83(b) elections for non-U.S. taxpayers.