eSignatures: Electronically Signing Your Tax Returns
Adopting eSignatures can help you cut down on the amount of time needed for administrative employees to follow up with clients and submit electronic tax returns.
Nowadays, it is not unusual to expect that the people you do business with are using eSignatures for official transactions. Electronic signature solution for accountant and tax professionals which offers this convenience can meet and exceed client expectations successfully.
Read on to find out about the advantage of the cost-effective convenience of electronically signing your tax returns.
Tax Returns Made Faster with eSignatures
The traditional process of printing, signing, and sending your tax documents through the mail is unnecessary when you are electronically signing tax returns. Instead, you can receive your returns within just a few weeks or less. In contrast, sending the physical tax documents may take between a few weeks, or even months to receive the tax returns.
Electronically Signing 8879 and 8878 Forms
The new IRM electronic signature guidance facilitates taxpayers who had to physically sign the authorization form either in their ERO’s office or mail it. More precisely, it has brought under its scope, the use of eSignatures on the two authorization forms – 8878 and 8879.
Both are IRS e-file signature authorization forms. However, form 8879 authorizes an ERO to enter the taxpayers’ PINs on individual income tax returns. In contrast, form 8878 is used for application of extension of time to file, and it authorizes an ERO to enter the taxpayers’ PINs on electronic forms 4868 and 2350.
The Process is Safer and More Secure
If you choose a legally binding electronic signature solution to sign your tax documents, you can benefit from different types of security. A tax filing vendor that uses encryption is sure to provide you with high-level security too.
Nobody will be able to access your tax documents unless they know your PIN. Additionally, as the information is transmitted, it is often encrypted, so even if someone were able to get it, they wouldn’t be able to understand it.
As per IRS, the list of specific data which the electronic signature vendor must capture include:
- Digital image of the signed form,
- Date and time of the signature,
- Identity verification,
- The method used to sign the record: Example, typed name; or a system log; or another audit trail that reflects the completion of the electronic signature process by the signer,
- Taxpayer’s computer IP address,
- Taxpayer’s login identification – user name.
Opt for a Suitable Electronic Signature Solution
Whenever you file a return electronically, you must sign it electronically as well. If you, as a taxpayer, give this obligation to a third party to prepare the return instead, that paid preparer also must eSign the return to e-file it. That’s why choosing the right electronic signature provider is a crucial step in the process of signing your tax returns.
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