Help with Electronic Sigs and Review

[Super Mom]

I use ATX software. Right now, I print the client copies for review and print the 8879 for them to sign and me to keep. However, was wondering if I could avoid the printing and go over the forms from my laptop and have them E-sign the 8879? Anyone know?

[ATSMAN]

I don't use ATX so I am not sure if the software allows that. My software (Drake) allows electronic signatures and 8879 can be signed electronically and a pdf copy of the form stored in the documents directory of that return. You can actually go paperless!

Have you called ATX support to find out if your software will support that. I think CCH Profx supports e-signatures.

[Super Mom]

I don't use ATX so I am not sure if the software allows that. My software (Drake) allows electronic signatures and 8879 can be signed electronically and a pdf copy of the form stored in the documents directory of that return. You can actually go paperless!

Have you called ATX support to find out if your software will support that. I think CCH Profx supports e-signatures.

No, I haven't called yet, but I will. Thanks for the reply, was just wondering if paperless may be possible!

[TAXNJ]

IRS website

Are you able to access the IRS website? It has valuable info - see below

https://www.irs.gov/e-file-providers/electronic-signature-guidance-for-forms-8878-and-8879

[ATSMAN]

No, I haven't called yet, but I will. Thanks for the reply, was just wondering if paperless may be possible!

I think ATX supports that feature with the Topaz signature pads and an additional module called Paperless Plus??

[Lion]

CCH has eSign which has been a free license and a per-use charge with two tiers depending of if verification (8879) is needed or not. Contact your rep.

[dtlee]

I am sure most of us know this, but it may make sense for anyone new to this to read the guidelines that TAXNJ shared. I was at a meeting in 2015 where the presenter announce that the IRS would accept e-signing and then noted that she had been doing it for years (her clients were faxing or emailing her the authorization forms). In actuality, what was happening is that the IRS was allowing a new class of signature with knowledge based authentication when the signature is done remotely using an appropriately secure tool.

On the page TAXNJ linked, they differentiate between in-person and remote signatures, with different rules imposed on the ERO for each type of transaction, but they mention that:

An electronic signature via remote transaction does not include handwritten signatures on Forms 8878 or 8879 sent to the ERO by hand delivery, U.S. mail, private delivery service, fax, email or an Internet website.

I have used a signature pad with my clients for several years which basically requires identity confirmation similar to what I would need to perform if they were signing on a sheet of paper. This is a bit different from CCH eSign which meets the far more stringent requirements for obtaining remote signatures since these signatures are digital signatures rather than digitized versions of handwritten signatures.