How to Write a Late 83(b) Relief Letter to the IRS

If you missed the 30-day deadline, the IRS’s §301.9100 relief is the only formal path—but approvals are rare. Success hinges on proving reasonable cause, good faith, and no prejudice to the Government. This guide outlines the process, expectations, and costs.

Before investing in a ruling request, model the tax impact with and without relief and confirm you have credible evidence to support your claim.

Key Takeaways

High Bar: Relief under §301.9100-3 requires more than oversight; you must demonstrate reasonable cause and diligence.
Costly and Slow: Expect months of review and meaningful professional fees with uncertain outcomes.
Evidence-Driven: Maintain documents (emails, advisor letters, grant agreements, mailing records) to substantiate your timeline.

How to Request Late 83(b) Relief

Evaluate your facts: Map the timeline from grant to discovery; identify advisor guidance or unusual circumstances.
Engage counsel: Experienced practitioners strengthen credibility and completeness of the submission.
Draft the letter: Cite Treas. Reg. §301.9100-3; narrate facts; attach exhibits; request permission to make the late election.
File and follow up: Submit per current IRS procedures; pay the user fee; respond to IDRs promptly.

Frequently Asked Questions

What are “reasonable cause” arguments?

Common arguments include reliance on a qualified tax advisor who provided incorrect advice, or extraordinary circumstances that made timely filing impossible. Mere oversight or ignorance of the rules is not sufficient.

How long does IRS relief take?

Expect several months. Relief requests often require a private letter ruling, attorney-prepared affidavits, and payment of user fees. There is no guaranteed timeline and outcomes are uncertain.

What fees will my CPA charge?

Professional fees vary widely, but it’s common to see several thousand dollars or more due to research, drafting, and correspondence with the IRS National Office.

Get Personalized Help

Relief requests are specialized. Work with a startup-savvy CPA or tax attorney to evaluate viability and prepare filings.

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