McHenry, Smith Introduce Legislation to Modernize IRS Filings for Job Creators

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McHenry, Smith Introduce Legislation to Modernize IRS Filings for Job Creators

Washington, Mar 15 -

Today, Rep. Patrick McHenry (NC-10), the top Republican on the House Financial Services Committee, and Rep. Adrian Smith (NE-03), a senior Republican on the House Ways and Means Committee, introduced the Eliminating Paperwork for Startups Act. 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.

“In 2022, it’s absurd that Americans are forced to use antiquated systems to file paperwork with federal agencies,” said Republican Leader McHenry. “Alongside my colleague Congressman Smith, I’m introducing the Eliminating Paperwork for Startups Act to push the IRS into the 21^st century. Allowing individuals to submit these forms electronically will make government more efficient and reduce paperwork for our nation’s job creators. This is just one part of Republicans’ efforts to modernize how our federal agencies operate—reducing the burden on our nation’s startups and small businesses.”

“America’s economy is driven by innovators who start businesses to put their ideas to work, said Rep. Smith. “It makes no sense for the IRS to broadly encourage online filing while also mandating certain forms to be filed via paper mail. The IRS badly needs to move into the 21^st century, and this bill represents a step in that direction. I thank Congressman McHenry for his leadership on this commonsense bill to alleviate some of the bureaucracy faced by American taxpayers and job creators.”

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.

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