Can electronic signatures be used to complete tax forms? This and other similar questions are common during tax season. It’s important that tax preparers and tax payers are knowledgeable about stipulations and requirements the IRS has in place for form completion to ensure timely and accurate tax filing. Fortunately, the majority of tax forms are eligible for completion electronically and the IRS has continued to provide guidance on how electronic signatures can be used and for which forms.
By instituting electronic signature usage, not only do tax preparers and tax payers have the opportunity to more conveniently complete tax forms from practically anywhere, but they can do so with the peace of mind that their personally identifiable information (PII) will be kept safe and secure.
The 2022 tax season is underway. Below, we’ll take a look at which official tax forms are eligible for electronic completion and what constitutes a complete and valid signature with the IRS.
What Are the IRS Electronic Signature Requirements on Tax Forms?
When filing IRS forms electronically, it’s important to have a thorough understanding of what the IRS requires. Fortunately, the IRS allows a wide variety of electronic signature formats, which gives tax accountants and tax filers a bit more flexibility.
While the IRS does not generally specify requirements for the technology used to procure a signature, they do provide guidance on what types of electronic signatures can be used:
- Third-party software created signature
- A digital signature image paired with an electronic record. This includes image formats, such as TIFF, JPG, JPEG, and PDF.
- Handwritten signatures provided on a signature blog, electronic signature pad, or by using a stylus on a screen
What Official IRS Tax Forms are Eligible for Completion Electronically?
As of December 8th of 2021, the IRS has provided updated guidance on which official tax forms may be signed electronically; these form numbers include:
- Form 11-C
- Form 637
- Form 706
- Form 706-A
- Form 706-GS(D)
- Form 706-GS(D-1)
- Form 706-GS(T)
- Form 706-QDT
- Form 706 Schedule R-1
- Form 706-NA
- Form 709
- Form 730
- Form 1042
- Form 1066
- Form 1120-C
- Form 1120-FSC
- Form 1120-H
- Form 1120-IC DISC
- Form 1120-L
- Form 1120-ND
- Form 1120-PC
- Form 1120-REIT
- Form 1120-RIC
- Form 1120-SF
- Form 1127
- Form 1128
- Form 2678
- Form 3115
- Form 3520
- Form 3520-A
- Form 4421
- Form 4768
- Form 8038-G
- Form 8038-GC
- Form 8283
- Form 8453 series
- Form 8878 series
- Form 8879 series
- Form 8802
- Form 8832
- Form 8971
- Form 8973
Is Knowledge-Based Authentication (KBA) Required for any IRS Official Tax Forms?
Knowledge-Based Authentication (KBA) is a security step that is commonly taken in the tax industry to verify taxpayer identities. When the use of KBA is enabled during electronic signature usage, additional identifying information such as a social security number is required. This helps enable an additional layer of security and fraud prevention when handling secure information and processes such as taxes. Additionally, usage of a KBA process is required by the IRS to complete forms 8879 and 8878.
What Other Tax Paperwork Can Be Completed Electronically?
Outside of completing official IRS tax forms electronically, there are various forms utilized by tax preparers throughout the year that can more easily and securely be completed with electronic signatures. These forms can include:
- Tax Preparation Client Intake Forms
- Tax Preparation Agreement Forms
- Income Forms
- Taxpayer Questionnaires
- Income and Asset Declaration Forms
- Tax Calculation Forms
- Tax Organization Forms
- And more!
How Can Foxit eSign Help My Business with Electronic Tax Forms?
Foxit eSign’s electronic signature software is designed with the needs of tax professionals in mind. Transform the way you do taxes in 2022 with features like:
- Dynamic security, including including 256-bit encryption and SOC 2 Type 2 compliance, that ensures your client’s information is always kept safe and secure
- Detailed audit trails, allowing you to know where, when, and who is viewing your documents at all times
- Useful and personalized security features, such as KBA and 2FA, that allow for enhanced security control and easy compliance with IRS requirements
- Faster client onboarding, including easy to use document tools and workflow-based signing
- Streamlined and simplified document prep with features like easy template creation and a pre-made template library
- Fluid company branding on all documents with customizable design and logo features
Start your Free Trial of Foxit eSign today and give your business and your clients the advantage this tax year.