Benefits and Limitations of E-Filing Section 83(b) Elections

• 9.17.2025
• Ciara Baker, Meghan Walsh, Benjamin Kelsey

Since late July 2025, the IRS has permitted elections under Section 83(b) of the Internal Revenue Code (Section 83(b) elections) to be made online on the IRS website through ID.me, the IRS’s multifactor authentication platform.  Previously, all Section 83(b) elections had to be filed with the IRS in hard copy at the IRS service center where the taxpayer filed his, her or its federal income tax return.  Over the years, ensuring that a Section 83(b) election was mailed to the appropriate address, in the appropriate manner, and before the strictly enforced 30-day deadline has been a source of distraction and confusion for many a founder and employee. The ability to e-file the election is therefore a very welcome development and should streamline the process for recipients of restricted property to make what is an otherwise straightforward, but highly significant, tax election. 

While the IRS has indicated that online filing is its preferred filing method, Section 83(b) elections may still be filed in hard copy.  This is important because the online form has certain limitations that may make e-filing impracticable in some situations. For example, the number of shares that may be entered into the current version of the online form is limited to 999,999, and the per-share value that may be entered is limited to two decimal places (with the result that fractional-cent share values may not be entered). These limitations may prohibit founders who receive large share grants or grants with per-share values of less than $0.01 from accurately completing the required fields.  Filing online may also be difficult for founders who are not currently U.S. taxpayers and who wish to file protective Section 83(b) elections.  In each of these cases, a traditional mail-in filing may be more appropriate.  We note that the IRS has made clear that taxpayers should use only one filing method with respect to a particular grant of restricted property – the form should not be filed both electronically and in hard copy.

Critically, the timing and other requirements for making a Section 83(b) election remain unchanged. The election must be made (whether online or in hard copy) within 30 days of the grant of the restricted stock (or other applicable property), and taxpayers must still provide a copy of the election—whether in the form of a photocopy of the original or generated by the IRS website—to the entity for which the services relating to the grant are performed.

If you have questions about which Section 83(b) election filing method is most appropriate for you, or about Section 83(b) elections in general, don’t hesitate to reach out to Ciara Baker, Meghan Walsh, Kim Wethly or Ben Kelsey in WilmerHale’s Tax Practice.