# IRS modernizes tax filings for startups following Carta’s coalition petition

Author:  
The Carta Team

Published date:  
24 October 2023

Following a years-long coalition petition by Carta, the IRS changed 83(b) election procedures to permanently allow submission with e-signatures.

This month, the IRS announced it would change [83(b) election](/content/uk/en/learn/equity/stock-options/taxes/83b-election/index.html) procedures to permanently allow submission with e-signatures. This change will help founders and employees take advantage of a critical tax incentive intended to support employee ownership.

Amid the challenges of the COVID-19 pandemic, the IRS temporarily allowed taxpayers to electronically sign specific documents, [including 83(b) elections](/content/uk/en/policy/coalition-fix-83b-elections/index.html), which enable founders and employee-owners to accelerate a portion of their tax liability on equity ownership to the [date they acquired their shares](/content/uk/en/learn/equity/stock-options/exercising/early-exercise/index.html). This e-signature allowance was set to expire on October 31, 2023.

On October 6, Carta and 32 signatories* sent a [letter](https://drive.google.com/file/d/1dZZmtbpmOnkio7OOI-dO2d9Of1FJs66V/view) to the IRS urging them to make e-signatures for the 83(b) elections permanent. This week, the IRS officially formalized 83(b) e-signature allowance in its [Internal Revenue Manual](https://www.irs.gov/irm).

“This election is crucial for founders and employee-owners, as it enables them to accelerate the taxation of equity ownership to the date they are granted the shares, which can result in significant tax savings,” said [Amy Miller](https://www.linkedin.com/in/amymillercpa), public policy director at Carta. “The decision marks an important milestone in modernizing IRS procedures.”

The coalition commends the IRS’s decision to extend this solution to founders and employee owners.

[Read the full coalition comment letter to the IRS here](https://drive.google.com/file/d/1dZZmtbpmOnkio7OOI-dO2d9Of1FJs66V/view)

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