you’d like to be taxed on your equity, such as shares of restricted stock, on the date the equity was granted to you rather than on the date the equity vests. It’s important to note here that Section 83(b) elections are applicable only for stock that is subject to vesting, since grants of fully vested stock will be taxed at the time of the grant. Put simply, it accelerates your ordinary income tax. It is considered compensation income and yes it is reportable as compensation paid to your employee or contractor. 83(b) is electing to report the ordinary income now u so the long term income is considered capital gains. It has its drawbacks if the company fails, but is best election if you thing long term there will be gains.
If you don't report the income on your return, even if de-minimis, it will be a failed 83(b) election and the IRS could require you to pay tax at vest. It is best to report every dollar.
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