Is Your 409A Stale? Find Out Before the IRS Does

A stale 409A doesn't just risk a bad valuation. It risks a 20% IRS excise tax on every option you've granted since. New SAFEs, a priced round, an LOI any one of these can quietly void your safe harbor before the 12-month clock even runs out. This checklist tells you if yours already has.

What you get:

• A 6-category audit covering the 12-month rule, SAFEs, priced rounds, M&A signals, business milestones, and grant mechanics

• The exact IRS safe harbor rule (§1.409A-1(b)(5)(iv)(B)) and what voids it before your valuation expires

• Clear triggers that require a new 409A immediately like new financing, term sheets, LOIs, and secondary sales

• What's at stake for employees and the company if grants were priced off a stale valuation