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In this situation, you make a Section 83 b election even when you have paid the fair market value for the restricted stock and there is no discount or spread. Print this answer: Search AdvisorFind from myStockOptions. If the optionee forgets to make the 83 b election which often happensthen the optionee loses most of the tax advantages mentioned above. But seriously, sorry about the dog. A hypothetical ESO option with the right to buy 1, shares. When there is no difference between these two amounts, there is no tax cost for performing the early exercise. At some companies this is called a restricted stock purchase plan or early-exercise stock options. An early employee will find herself in quite a pickle when she wants to leave: The forms that the employee must complete and sign are much longer and more complicated.

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