McHenry, Smith, DelBene, Velazquez Reintroduce Bipartisan Legislation to Modernize IRS Filings for Job Creators
Washington,
April 14, 2023 -
The Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), and Representatives Adrian Smith (NE-03), Susan DelBene (WA-01) and Nydia M. Velázquez (NY-07) reintroduced the Eliminating Paperwork for Startups Act for the 118th 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,” said Chairman McHenry. “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.”
“It makes no sense for the IRS to encourage online filing while also mandating certain forms be filed via paper mail,” said Rep. Smith. “I thank Chairman McHenry for reintroducing this bill, which would provide the innovators who drive our economy much-needed relief from some of the bureaucracy they face.”
“It’s critical that lawmakers work to make it as easy as possible for entrepreneurs to start and run small businesses. Unfortunately, the outdated mandatory mail-in filing requirements for 83(b) forms create unnecessary burdens and delays for new business startups,” said Congresswoman Velázquez. “I’m proud to support the Eliminating Paperwork for Startups Act, which will help modernize how startups file their taxes. This bill will help small firms save time and resources, so they can focus on what they do best, creating jobs.”
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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