An 83(b) election lets taxpayers accelerate a portion of their tax liability on equity ownership to the date of acquiring the shares—it can result in significant tax savings. Carta sought a streamlined 83(b) election process that would allow employees to sign and file electronically.

The policy team organized 40+ organizations to petition the IRS for electronic signature relief.

Outcome: IRS has provided temporary relief that enables electronic signature for 83(b) elections through October 2023. Bipartisan legislators have introduced a billhref> to make the change permanent.

In February 2022, the SEC proposed new rules requiring greater disclosures and reporting requirements for registered investment advisers.

Carta sought to expand the comment period beyond the original 30 days and recommended SEC consider the rules’ adverse impact on emerging funds.

Outcome: The SEC extended the comment period and Carta remains engaged as the matter is still pending.

The qualified small business stock (QSBS) exclusionhref> limits capital gains taxes for the founders, employees, and investors of small businesses. Carta sought to prevent curtailment of the QSBS exclusion, which provides vital support to startups. The policy team:

• Built a coalition of advocacy leaders across the innovation economy
• Organized multiple coalition letters to Congress
• Engaged 40+ meetings with policymakers

Outcome: The measure to curtail QSBS curtailment was removed from Inflation Reduction Act.