Updated July 28, 2026. Quick answer: There is no general relief. Without a timely election you are taxed as the shares vest, at each vesting date’s value — which in a company that is appreciating means ordinary income on a rising number, spread across the vesting schedule.
What now happens automatically
Each tranche is ordinary income as it vests, measured at that date’s value. Your basis in each tranche is that value, and your capital gains clock starts separately for each. In a company whose valuation is climbing, this is materially worse than an election would have been, and it worsens as the value rises.
What you can still control
- Future grants. The deadline is per transfer. A missed election on one grant says nothing about the next one — put a calendar reminder on the transfer date.
- Documentation. Every vesting date’s valuation becomes a tax fact. Collect them as they happen rather than reconstructing later.
- Sequencing. The vesting income is ordinary and largely fixed, but when you sell the shares afterwards is still yours to choose.
Do not backdate anything. A late election filed as though it were timely is a considerably worse problem than the one you are trying to solve.
Sources
IRC §83(a); IRC §83(b)(2); Treas. Reg. §1.83-2(c).
This states what the cited authority says. It is not tax advice; AMT in particular is computed across your whole return and cannot be resolved from one page.