Founders on Carta’s platform can now more easily file an 83(b) election, a tax filing that moves up the timing of tax liability to the grant date of equity issuance.
In 2022, Carta started offering automated 83(b) submissions to users who chose to exercise early. This new tool, created specifically for founders and RSA holders, helps founders potentially reduce their tax obligations by making it easier to file their 83(b) elections within their window of eligibility: 30 days from their stock issuance.
This release automatically generates the 83(b) form, provides instructions on how to file it with the IRS, and sends an email notification that includes issuance date and days left to file.
How does it work?
83(b) for founders is available in all Carta plans. This feature will be automatically available for all founders who have been issued founder stock within the last 30 days.
After accepting a stock certificate in Carta, if Carta detects eligibility to file an 83(b) election, Carta will automatically generate an email notification and the 83(b) form.
To view the 83(b) form, log-in to your Carta account, open the applicable certificate, and click the 83(b) elections tab.
Provide additional information, including your social security number and address. You can also choose to manually enter a different fair market value (FMV).
When completed, you can download, print, and make additional edits.
Before mailing to the IRS, sign and date. Make sure to upload a signed copy of the form and add the date mailed on Carta. This makes it easy for you to remember and access a record of this filing – conveniently saved in your Carta account.
→ Learn more about 83(b) elections
→ Learn more about how our Policy Team is fixing 83(b) elections
DISCLOSURE: This communication is on behalf of eShares Inc., d/b/a Carta Inc. (“Carta”). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. ©2023 eShares Inc., d/b/a Carta Inc. (“Carta”). All rights reserved. Reproduction prohibited.
