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IRS permanently extends ability to electronically sign certain tax forms, returns, and documents
October 2023
In brief
The IRS on October 17 updated Section 10.10.1 (IRS Electronic Signature (e-Signature) Program) of the Internal Revenue Manual (IRM) to permanently extend the ability of taxpayers and their representatives to sign digitally or by an image of their signatures on certain forms and returns as well as certain compliance-interaction-related forms and documents. The IRS in 2020 adopted these electronic signature procedures as a temporary response to the COVID pandemic and in 2021 extended the temporary procedures to October 31, 2023.
Observation: The permanent integration of the electronic signature procedures into the IRM is consistent with the agency’s modernization efforts to enable digital transactions, including expanding e-signature capabilities.
Action item: Forms not specifically identified in either IRM Exhibit 10.10.1-1 (below) or in IRM Exhibit 10.10.1-2 (below) generally must be signed with a handwritten (i.e., wet ink) signature. Taxpayers must sign with a handwritten signature forms that are not specifically identified and do not fall under either of the exceptions discussed below.
In detail
Background
The IRS in August 2020 announced in IR-2020-194 that it was implementing a temporary option allowing taxpayers and tax professionals to use electronic signatures when signing certain forms that generally required a handwritten signature. This change was intended to protect the health of taxpayers and tax professionals during the COVID pandemic by reducing the need for in-person contact and allowing both groups to work remotely to timely file tax forms. The agency in November 2021 issued a memorandum extending the electronic signature procedures through October 31, 2023.
IRM updated to permanently provide for electronic signatures
Requirements for electronic signing
Updated IRM 10.10.1 sets forth a framework for applying electronic signatures consistently across the IRS and guides how the agency executes electronic transactions. It provides that each permitted electronic signing process must satisfy the following five requirements:
- The signer must use an acceptable form of electronic signature as described in IRM 10.10.1.3.1.1, Acceptable Forms of Electronic Signatures.
- The electronic signature must be executed or adopted by a person in a manner that meets IRM 10.10.1.3.1.2, Intent to Sign the Electronic Record, that demonstrates the intent of the person to sign the electronic record.
- The electronic signature must be attached to or associated with the electronic record being signed in accordance with IRM 10.10.1.3.1.3, Attachment or Association of the Electronic Signature with the Electronic Record.
- There is a means to identify and authenticate a person as the signer in accordance with IRM 10.10.1.3.1.4, Identifying and Authenticating the Signer, and the signer must be authorized to execute the document.
- There is a means to preserve the integrity of the signed electronic record in accordance with IRM 10.10.1.3.1.5, Preserving the Integrity of the Signed Electronic Record.
Forms of electronic signatures
IRM 10.10.1.3.1.1 provides that electronic signatures can take many forms and can be created by many different technologies (i.e., no specific technology or form of signature is required). The form of the electronic signature can include any electronic sound, symbol, or process permitted by the IRS on the specific document. The IRS currently permits the following forms of electronic signature:
- Typed name that is typed within or at the end of an electronic record, such as typed into a signature block;
- Scanned or digitized image of a handwritten signature that is attached to an electronic record;
- Shared secret, such as a code, password, or personal identification number (PIN);
- Unique biometric-based identifier, such as a fingerprint, voice print, or a retinal scan;
- Handwritten signature input onto an electronic signature pad;
- Handwritten signature, mark, or command input on a display screen by means of a stylus device;
- Selected checkbox on an electronic device such as a computer or tablet; and
- Signature created by a third party software.
Approved signature methods
IRM Exhibit 10.10.1-1 lists the signature methods that have been approved by the IRS in earlier regulations, publications, or other documents and continue to be accepted under current guidance.
Signature Method |
Applicable IRS Form |
|
Selecting a checkbox on an electronic device such as a computer or tablet |
Form 8655, Reporting Agent Authorization |
|
Inputting a PIN |
Form 720, Quarterly Federal Excise Tax Return Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return Form 941, Employer's Quarterly Federal Tax Return Form 990, Return of Organization Exempt From Income Tax Form 1040, U.S. Individual Income Tax Return Form 1065, U.S. Return of Partnership Income Form 1120, U.S. Corporation Income Tax Return Form 2290, Heavy Highway Vehicle Use Tax Return Form 4506-T, Request for Transcript of Tax Return Form 8849, Claim for Refund of Excise Taxes Form 8878, IRS e-file Signature Authorization for Form 4868 or Form 2350; and those forms in the Form 8878 family Form 8879, IRS e-file Signature Authorization; and those forms in the Form 8879 family (e.g., Form 8879-TE, IRS e-file Signature Authorization for a Tax Exempt Entity) |
|
Inputting a security code and an authorization code |
Form 720-CS, Carrier Summary Report Form 720-TO, Terminal Operator Report |
|
Using an electronic signature pad |
Form 8878, IRS e-file Signature Authorization for Form 4868 or Form 2350, and those forms in the Form 8878 family Form 8879, IRS e-file Signature Authorization; and those forms in the Form 8879 family |
|
Using a stylus device |
Form 4506-T, Request for Transcript of Tax Return Form 8655, Reporting Agent Authorization ACH Direct Pay |
|
Using voice signature technologies |
Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit |
|
Using a scanned or digitized image of a handwritten signature |
Form 8879-F, IRS e-file Signature Authorization for Form 1041 |
Forms where electronic or digital signature permitted
IRM Exhibit 10.10.1-2 lists the forms where electronic or digital signatures are permitted.
- Form 11-C, Occupational Tax and Registration Return for Wagering
- Form 637, Application for Registration (For Certain Excise Tax Activities)
- Form 706, U.S. Estate Tax Return
- Form 706-A, United States Additional Estate Tax Return
- Form 706-GS (D), Generation-Skipping Transfer Tax Return for Distributions
- Form 706-GS (D-1), Notification of Distribution from a Generation-Skipping Trust
- Form 706-GS (T), Generation-Skipping Transfer Tax Return for Terminations
- Form 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts
- Form 706 SCHEDULE R-1, Generation-Skipping Transfer Tax
- Form 706-NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return
- Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
- Form 730, Monthly Tax Return for Wagers
- Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
- Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return
- Form 1120-C, U.S. Income Tax Return for Cooperative Associations
- Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation
- Form 1120-H, U.S. Income Tax Return for Homeowners Associations
- Form 1120-IC DISC, Interest Charge Domestic International Sales – Corporation Return
- Form 1120-L, U.S. Life Insurance Company Income Tax Return
- Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons
- Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return
- Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts
- Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies
- Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B)
- Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship
- Form 1128, Application to Adopt, Change or Retain a Tax Year
- Form 2678, Employer/Payer Appointment of Agent
- Form 3115, Application for Change in Accounting Method
- Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts
- Form 3520-A, Annual Return of Foreign Trust with a U.S. Owner
- Form 4421, Declaration – Executor’s Commissions and Attorney’s Fees
- Form 4768, Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes
- Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues
- Form 8038-G, Information Return for Government Purpose Tax-Exempt Bond Issues
- Form 8038-GC, Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales
- Form 8283, Noncash Charitable Contributions
- Form 8453 series, Form 8878 series, and Form 8879 series regarding IRS e-file Signature Authorization Forms.
- Form 8802, Application for United States Residency Certification
- Form 8832, Entity Classification Election
- Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent
- Form 8973, Certified Professional Employer Organization/Customer Reporting Agreement
- Elections made pursuant to Section 83(b.).
Forms not specifically identified in either IRM Exhibit 10.10.1-1 or in IRM Exhibit 10.10.1-2 generally are required to be signed with a handwritten (i.e., wet ink) signature. One exception is in the context of IRS personnel working person-to-person with taxpayers to address or resolve issues, in which case IRS employees may accept images of signatures and digital signatures on documents related to the determination or collection of a tax liability or to the settlement of tax controversies. IRM 10.10.1.6.1 (11-18-2021). Another exception is Form 2848, Power of Attorney and Declaration of Representative, which may be electronically signed when submitted to the IRS online at IRS.gov/Submit2848. If a Form 2848 does not fall under either of the above exceptions, it must be signed with a handwritten signature.
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