Washington - Recently, Congressman Patrick McHenry (NC-10) reintroduced the Eliminating Paperwork for Startups Act for the 118^th Congress. This legislation will modernize how 83(b) election forms are filed with the Internal Revenue Service (IRS)—making these filings more efficient and reducing their burden on America’s job creators.

“It is past time for federal agencies to update antiquated filing systems to match modern technology. The Eliminating Paperwork for Startups Act is another step in House Republicans’ mission to modernize how federal agencies operate and interact with the public. By reforming mandatory mail-in filing requirements, this legislation will streamline the tax filing process for entrepreneurs and reduce the burdens facing our nation’s small businesses. I’m proud to reintroduce this bipartisan legislation alongside my colleagues.”

Background:

The Eliminating Paperwork for Startups Act will require the IRS to allow individuals to file 83(b) election forms and receive their responses electronically. Under current law these forms are required to be submitted via paper mail. Section 83(b) of the tax code gives a startup’s employees and founders the option to pay taxes on total fair market value of restricted stock at the time of granting or vesting. The election must be made within 30 days after issuing restricted shares.