Signing long distance

[Possi]

Thanks!

Both CCH's offering and also Intuit's look to include identity verification against knowledge based authentication (that whole validating identity against "the applicable agency or institution or through credit bureaus or similar databases" in pub 1345.) Makes them a good deal.

I don't know what all tax software offers remote signatures but one thing for sure I'd ask my software company before relying on it is that their offering does include the KBA part of the IRS requirement. Otherwise you're just getting a signature and you still need to validate the identity somehow.



With both DocuSign and Adobe eSign services you need to make sure you're satisfying the identity verification requirement. KBA identity verification is an additional fee for both.

DocuSign has DocuSign ID Check "ID Check is a per-use, fee-based service add-in to DocuSign" - the pricing is not listed on their site. https://www.docusign.com/partner/doc...risk-solutions

Adobe also has a KBA feature. It is also an additional charge (their service comparison shows "$"). I didn't locate the pricing for it.

With DocuSign / Adobe eSign you would need to make sure the KBA has the right number of attempts to get it right. If the taxpayer fails the knowledge based authentication questions after three attempts, then the ERO must obtain a handwritten signature. So if either of those products let the taxpayer have five attempts for example that would be a problem. (Possibly it's user configured?)

Obviously CCH and Intuit's offering is more specific to tax preparation so I would expect them to permit no more than 3 attempts.

Perfect! I sure appreciate all the responses.

You have given me more feedback than I knew existed. I'll be sure to follow your lead, ensuring the KBA requirement is fulfilled.

I will be attending a webinar with CCH this morning regarding e-signatures. I hope this streamlines the 8879 retrievals for my overseas and out-of-state military clients at a reasonable charge.
Thanks again!!

[Possi]

I got the skinny from Taxwise

They are going to charge $4 per return for out-of-office e-sigs. Local e-sigs are no charge. At least that is what I understand.

I still have questions with them, but basically they take on all the IRS regs and they are in full compliance.

I need to know things like;

How do I access the database of sigs?

Which copy of the tax return do they get? I only want them to get the tax return, and not all of the back up pages. Particularly the "Main Info" sheet that tells them how much TIME I spent on the return and some special notes I might make, like significant other, who was born, who died, etc.

Also, how do I keep the signatures straight? Whose sig is a hard copy in my office, who e-signed?

Does anyone have experience with this? I don't want to re-invent the wheel. If hard copies are easiest, I'll stick with it.

But I KNOW that my clients do NOT secure their emailed signature pages when they return them to me. That worries me. I can't control them, I know...

[Lion]

CCH's eSign was the first to meet the IRS requirements and has qualified for many states, also. It's about $3 with the KBA required for the IRS. Communication to you and to the client is built in. I think the client can sign right on her phone/tablet/device. It's $1 if you don't need verification, such as for your engagement letter. I have the free license but haven't used it yet.

[TAXNJ]

Video

They are going to charge $4 per return for out-of-office e-sigs. Local e-sigs are no charge. At least that is what I understand.

I still have questions with them, but basically they take on all the IRS regs and they are in full compliance.

I need to know things like;

How do I access the database of sigs?

Which copy of the tax return do they get? I only want them to get the tax return, and not all of the back up pages. Particularly the "Main Info" sheet that tells them how much TIME I spent on the return and some special notes I might make, like significant other, who was born, who died, etc.

Also, how do I keep the signatures straight? Whose sig is a hard copy in my office, who e-signed?

Does anyone have experience with this? I don't want to re-invent the wheel. If hard copies are easiest, I'll stick with it.

But I KNOW that my clients do NOT secure their emailed signature pages when they return them to me. That worries me. I can't control them, I know...

If you go with a reputable company they should have a video of how it works and since you are paying them, answer all your questions so you are comfortable. Think the questions you are now asking would be product specific. Remember you get what you pay for e.g., low cost = low service vs high cost = high service.

[Possi]

TW is CCH

CCH's eSign was the first to meet the IRS requirements and has qualified for many states, also. It's about $3 with the KBA required for the IRS. Communication to you and to the client is built in. I think the client can sign right on her phone/tablet/device. It's $1 if you don't need verification, such as for your engagement letter. I have the free license but haven't used it yet.

This was Taxwise, which is CCH. The fee they quoted was $4 per return, but then they said that if the e-sig was local, not needing verification, it was free. The sound was not good, in and out, and I missed some of the words he was saying. I'll look into it further. Do you use this? If so, how do you keep track of WHERE your sigs are? Printed, e-sig? You can't force e-sigs, so you would have to have 2 different kinds of signatures.

[Possi]

I agree

If you go with a reputable company they should have a video of how it works and since you are paying them, answer all your questions so you are comfortable. Think the questions you are now asking would be product specific. Remember you get what you pay for e.g., low cost = low service vs high cost = high service.

You get what you pay for, I completely agree.

[Lion]

I haven't used it yet. But, I have people who upload signatures to me, fax signatures, mail signatures, even email that I tell them not to use.

I have some complex returns but not a lot of returns, so tracking is simple. Even though not much goes into a file folder now, I pull their folder when I prepare the return; it sits in a stack until I receive signatures. So far, I still print out the 8879s and other signature forms and attach W-2s. Then the returns are efiled and the client's folder filed. The signature forms now sit in a stack until I have acknowledgements, then they go into a folder for the year. Last year it was paper, but I may scan this year.

If I try not printing 8879s this season, I'll have a virtual file folder on my desktop instead of the stack on my credenza.

Look at how you track now. Then see if you can turn your paper into .pdf to track one folder on your computer desktop, or print your eSigned forms to track one folder on your desk. Or, keep one list with your two different folders. Look at what you do now and try what seems to be the easiest for the way you work. If you're the boss, you can change as the season goes along as you discover what works for you.

[KC-CPA]

Signing long distance

Based on this string of replies, it sounds like a copy of the signature on the 8879 by fax, scan and/or e-mail is acceptable. In the past I get an original of the signature so that I have an original document not a copy, but I would be fine with just a copy?

I will probably move toward the electronic signature but for the few that will not do that I want to make it as efficient as possible and save all of us time (mainly me..

Thanks.

[Lion]

Check on your state requirements to see if they accept a copy of a signature.

[Matt Sova]

Citrix

I use Citrix ShareFile and GoToMyPC, so naturally they called me about their e-signature software. I have probably 15-20 out of state clients that just sign the 8879 and fax or scan and e-mail back to me. Occasionally one will send via US Mail. It did not make sense to me, but I think they charged around $100/qtr with no limit to the amount of e-signatures. You could also shut it off at any time, so if you do not need it during the off season, you do not pay for it. With 75 clients and a lot of them not being able to scan and e-mail this could be something that would work for you.

[Possi]

Go To My PC

I use GoToMyPC.

I hit a wall with all the states I do. Some allow e-sig and some do not, is my understanding. I have not had time to research this, but it was a stopping point for me. I didn't want some e-sig, some hard sig, some I need to scan... I was overwhelmed with the thought of keeping up with it all. Sometimes I think, after doing this on my own for these 15 years, I need to have a specialist come in and help me with going absolutely paperless. Right now, I keep hard copies of signature pages and W2s ONLY. Everything else is scanned and saved on the computer. If I could get these signature pages out of here, I'd be happy.
Now we are in full swing, and the decision has been made not to e-sign. I'm not happy about it, but I just couldn't do another thing.
Thanks for all your help. I will save this entire chat, and revisit this right after tax season.
Carry on, my wonderful invisible office co-workers!

[Lion]

By the way, GoToMyPC was used by the owner of the first CT CPA firm to be hacked.

As of last October, the only states that didn't allow the use of electronic signatures

District of Columbia
Delaware
Illinois
Iowa
Kentucky
Maryland
New York
Oklahoma
Pennsylvania

But the list is now smaller. Just couldn't find the list I know I saw in January.

[Possi]

Thanks!

I didn't know which states use it and which ones didn't. I should have signed up. It is pricey, but still...