The present invention provides an improved bias magnet-to-magnetoresistive element interface and method of fabrication. In a preferred embodiment, the wall/walls of an MR element opposing a bias layer are formed by over etching to provide vertical side walls without taper. In the preferred embodiment, a protective element is formed over the MR element to protect it during etch processes. In some embodiments, a filler layer is deposited prior to bias layer formation. In CIP embodiments, any portion of the filler layer forming on vertical side walls of the MR element is etched to provide an exposed side wall surface for contiguous bias layer formation. In CPP embodiments, the filler layer forms on a vertical back wall and electrically insulates the MR element from the bias layer. In CIP and CPP embodiments, tapered portions of the bias material, which form overhanging the MR element, are removed by directional etching to improve the direction and stability of the induced longitudinal field within the MR element. In some CIP embodiments, tapered overhang removal allows for formation of improved lead structures, which may be deposited on the MR element closer to the side walls, and which are not pinched off by the overhang of an underlying bias layer, thus improving current density profile and definition of the actual effective track width of the device.