Generate a professional California Franchise Tax Board cover letter and Section 83(b) election statement. California requires a separate filing to FTB in addition to the IRS. Includes deadline calculator, filing checklist, tax calculation, and complete cover letter with election statement.
I built this generator to help startup founders and employees who receive restricted stock properly file their Section 83(b) election with the California Franchise Tax Board. While most people know they need to file the 83(b) election with the IRS within 30 days of their stock grant, many do not realize that California requires a separate copy be sent to the FTB. Missing either filing can result in significant unexpected tax liability when the stock vests at a higher fair market value.
This generator produces a comprehensive cover letter addressed to the Franchise Tax Board at the correct mailing address, along with a complete election statement that references both IRC Section 83(b) and California Revenue & Taxation Code Section 17081. The document includes all required taxpayer and company information, stock grant details, fair market value calculations, vesting schedule descriptions, and the required certifications. A built-in deadline calculator automatically computes your 30-day filing window from the grant date.
The filing checklist ensures you do not miss any step: filing with the IRS via certified mail, sending the FTB copy, providing your employer with a copy, and retaining a copy for your personal records. Every field updates the live preview instantly, and the tax calculation section dynamically computes the income recognized based on the spread between FMV and price paid multiplied by the number of shares. Whether you are a first-time founder receiving restricted stock or an experienced startup employee, this tool generates the professional California filing documentation you need.
Key features include: automatic 30-day deadline calculation from grant date, dynamic income recognition calculation, conditional spouse information for joint filers, complete filing checklist, proper FTB mailing address, references to both federal and California tax code provisions, and dual-format cover letter with election statement.
A Section 83(b) election allows taxpayers who receive restricted stock or property subject to vesting to elect to be taxed on the fair market value at the time of grant rather than at vesting. This can result in significant tax savings if the stock appreciates in value between the grant date and the vesting dates.
The 83(b) election must be filed with the IRS within 30 days of the date the property is transferred. This deadline is absolute and cannot be extended. California does not specify a separate deadline, but best practice is to file the FTB copy at the same time or immediately after the IRS filing.
Mail the California copy to: Franchise Tax Board, PO Box 942840, Sacramento, CA 94240-0040. Use certified mail with return receipt requested for proof of timely filing.
Yes. California Revenue & Taxation Code Section 17081 requires a separate filing with the Franchise Tax Board. The IRS filing alone does not satisfy the California requirement. You must file copies with both the IRS and the FTB.
Yes. Treasury Regulation Section 1.83-2(d) requires that a copy be provided to the person for whom services were performed (typically your employer). Your employer needs this for tax reporting and withholding purposes.
If you miss the 30-day deadline, the election cannot be made and there is no extension or relief available. You will be taxed on the FMV at each vesting date rather than the grant date, which can result in substantially higher tax liability if the stock has appreciated.