I go with option 1 - cut the tab down until each foor it just covered. Either round them off to create pegs, or leave them square and use a bigger pin vice.
I have cut the tab off completely and pinned them, but the tab is part of the model, so I find it makes a stronger join.
Be aware that when you split the tab it will push the model out to the sides. I keep meaning to do that step with a razor saw, but generally find nibbling away at the first split works well enough