An 83(b) election is a provision of the federal tax code that allows a recipient of restricted stock (typically a founder or employee of a startup company) to pay income tax on the value of the stock when it is first granted rather than when it is actually received, which can be years later and at a much higher value.
Any individual who receives stock as compensation, subject to a vesting period, may make an 83(b) election. If there is no vesting period, the individual is forced to pay income tax on the value of the stock when it is received.

An 83(b) election is a tax decision made by a recipient of restricted stock or equity. Normally, when you receive stock options or shares that vest over time, you pay taxes when the stock vests, based on its value at that time. However, with an 83(b) election, you can choose to pay taxes on the stock's value at the time it's granted, rather than when it vests.

This election is often beneficial if the stock’s value is expected to rise significantly, as it allows you to lock in a lower tax basis early on. The election must be filed with the IRS within 30 days of receiving the stock and is typically used by startup employees or founders.