In this article, we’ll identify and answer common tax FAQs regarding filing and the usage of electronic signatures.
Accuracy, timeliness, and compliance are three of the most important factors for accountants and CPAs during tax season. When any of these three factors are missed, it can lead to problems with the IRS – including additional penalties and fees. To avoid these problems, more accounting professionals are turning to smart software solutions like electronic signatures.
Electronic signatures provide key benefits that have the capability of transforming the accounting and tax filing process in significant ways.
- Faster document completion through emailing
- Enhanced convenience with the capability to sign anywhere
- More security with controlled visibility, secure password-controlled access, digital signatures, and more
- Easier industry compliance through knowledge-based authentication (KBA) and multi-factor authentication (MFA) options
- Increased accuracy with mandatory fields and customized completion instructions
- Better team collaboration by allowing emails to be sent and easily edited between team members
- Increased savings by reducing the usage of pen, paper, printing, and mailing costs
Benefits aside, with the usage of electronic signatures still being relatively new for IRS filing, it’s common for accountants, their clients, and their businesses to have questions surrounding usage. Let’s take a look at some of the most common tax FAQs surrounding electronic signatures below:
Tax FAQ 1: What tax forms can be signed and filed electronically?
The IRS has updated signing requirements to allow for most tax forms to be electronically signed and filed electronically. For a complete list of acceptably signed electronic tax forms, please visit the IRS page here.
Tax FAQ 2: Are electronic signatures compliant with IRS form 8879?
Yes, form 8879 can be filed electronically in a compliant manner. To do so, the IRS will require knowledge-based authentication (KBA) to be used in order to verify identity. Foxit eSign aka eSign Genie offers KBA as an option to users. Click here to learn more about using KBA with Foxit eSign aka eSign Genie.
Tax FAQ 3: Are electronic signatures secure enough to be used with sensitive tax data?
Yes! In fact, electronic signatures and digital tax forms are more secure than paper documents. By electronically signing your IRS tax forms, you avoid the possibility of paperwork being lost, misplaced, duplicated, or stolen. Additionally, with electronic signatures, tax preparers and tax filers have the ability to enact strict visibility controls to prevent unwanted viewership or access.
Tax FAQ 4: Will my accounting clients need to pay to sign their tax forms?
No – signing is always free for recipients with Foxit eSign aka eSign Genie! No purchase or account is required to complete and sign documents.
Tax FAQ 5: In the case of joint filing, can multiple parties electronically sign one form?
Absolutely! Joint filing is made easy with Foxit eSign aka eSign Genie. Any tax document can be sent to multiple parties for signing. Plus, users can establish signer sequences in the case that the signature order matters. Upon completion, all signing parties will receive a completion certificate and a copy of the completed document.