Electronic Filing of Section 83(b) Elections – A Modern Convenience with Important Deadlines

The Internal Revenue Service (IRS) has quietly modernized the once antiquated process for making a Section 83(b) election. Many founders, employees and other service providers use a Section 83(b) election to recognize income on equity at the time of grant so that future appreciation may be taxed at capital gains rates. Until recently, taxpayers had to print and mail a signed election to the IRS with a return‑receipt card — a process that often resulted in anxiety about whether the filing arrived on time. In late 2024 the IRS released Form 15620 to standardize the 83(b) election; then, in 2025, it enabled electronic submission through the IRS online portal. This short note summarizes the key advantages and cautions around the new e‑filing option and the immediate confirmation it provides.

What has changed?

• Electronic filing is now available. Historically, taxpayers mailed a self‑drafted statement (or, after 2024, a paper Form 15620) to the IRS office where they file their returns. The IRS now allows taxpayers to submit Form 15620 online through an IRS account verified using ID.me. Once logged in, filers complete Form 15620 on the IRS site and upload it electronically. The online system then provides immediate confirmation of receipt and lets filers download a copy for their records. Paper filing remains an option, but taxpayers should only file once — either electronically or via mail — to avoid confusion.
• Easier record‑keeping. The new portal eliminates the uncertainty and delays of certified mail. Filers receive an electronic timestamp and can print or save a PDF copy of the completed election. Because the election must still be provided to the company issuing the equity, the download feature simplifies sharing the filed form with an employer.
• Timing rules are unchanged. The Code still imposes a strict 30‑day deadline from the date the restricted shares or other property are transferred to make the election. Late elections are not permitted, and taxpayers must continue to furnish a copy to their employer. The obligation to file within 30 days means planning ahead — particularly since creating an ID.me account may require uploading a government‑issued ID and completing a short video verification.

Should you file electronically?

Electronic filing is generally advisable because of the immediate confirmation and reliable record of timely filing. However, some situations may still warrant a paper filing. The IRS portal currently limits the number of securities (shares) that can be entered per submission, and its two‑decimal input fields may create rounding issues for very low per‑share prices typical in early‑stage companies. Where the online form’s constraints materially distort the purchase price or fair market value, practitioners recommend filing a paper Form 15620 and sending it by trackable mail.

Takeaways

1. Create your IRS account in advance. If you anticipate receiving restricted shares or exercising options, set up your ID.me‑verified account early to avoid delays. Verification requires a photo of your ID and a selfie.
2. Monitor the 30‑day window. Regardless of how you file, calendar the 30‑day deadline from the date you receive the restricted property. Missing the deadline will invalidate the election.
3. Save and share confirmation. Immediately after electronic submission, download the filed Form 15620 or confirmation page. Send a copy to your company and retain the document in your records.
4. Consult your advisors. A Section 83(b) election can significantly affect your tax profile. Speak with your tax counsel to determine whether the election is appropriate and whether to use the e‑filing portal or a paper filing. Remember that once made, an 83(b) election is irrevocable.

The IRS’s e‑filing option for Section 83(b) elections is a welcome modernization. By planning ahead and taking advantage of the online portal, you can avoid the uncertainty of mail and receive immediate confirmation of your filing. Please feel free to contact me if you have questions about this new process or whether a Section 83(b) election makes sense for your situation.

This post was written by Joe Wallin, an attorney at Carney Badley Spellman, who specializes in helping founders and emerging companies navigate complex legal issues, including equity structuring, fundraising and founder matters. Please note information in this post is for general purposes only and does not constitute legal advice.