November 1, 2023
Use of Electronic Signatures for 83(b) Elections Extended Indefinitely
Earlier this month, the IRS updated its Internal Revenue Manual to permit the use of e-signatures on certain forms, including Code Section 83(b) elections, indefinitely. The temporary permission for e-signatures granted during the pandemic was set to expire on October 31. Here’s a snippet from a Shearman & Sterling alert regarding requirements for e-signatures:
The IRS’ electronic signature policy for Section 83(b) Elections and certain other specified tax forms provides that electronic and digital signatures may take various forms and can be created by different technologies. No specific technology is currently required for Section 83(b) Elections (though specific technologies may be required by the IRM in the future). Accordingly, acceptable forms of electronic signature for Section 83(b) Elections should include a name typed into a signature block, a scanned image of a handwritten signature or a signature created by third-party software (such as DocuSign).
– Meredith Ervine