IRS Permanently Allows Electronic Signatures on Certain Tax Forms
The US Internal Revenue Service (IRS) has updated the Internal Revenue Manual (IRM) to specify which forms taxpayers can electronically sign and which types of electronic signatures are permitted, now on a permanent basis.
During the COVID-19 pandemic, the IRS issued several interim guidance memorandums that gave taxpayers the ability to electronically sign certain documents instead of having to provide handwritten signatures. While these temporary measures were set to expire on October 31, 2023, the IRS has now incorporated this interim guidance into IRM 10.10.1, IRS Electronic Signature (e-Signature) Program.
Permitted Signature Types
The IRM confirms that no specific technology is required for these electronic signatures, subject to meeting the guidance under IRM 10.10.1.3.1.1, which permits the following types of electronic signatures:
- 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 PIN
- Unique biometric-based identifier, such as a fingerprint, voice print, or retinal scan
- Handwritten signature input on 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
- Signature created by third-party software
Signature Requirements
While the IRM permits the use of multiple types of electronic signatures, all electronic signatures must satisfy these requirements, found in IRM 10.10.1.3.1, to be legally binding:
- The electronic signature must be executed or adopted by the signer with the intent to sign the form.
- The electronic signature must be attached to or associated with the form in a manner to establish the electronic signature was applied to that specific form (e.g., the signer can clearly perceive and review what form they are signing).
- The signer must be authorized to sign the form, and there should be a means to identify and authenticate the signatory.
- There is a means to preserve the integrity of the electronically signed form, i.e., signatures cannot be excised/copied to falsify the form, and the form post-signature must be tamper-proof.
Tax professionals may want to store a copy of the electronic transmission of each signed form should further authentication be required at a later date.
Permitted Forms
According to IRM Exhibit 10.10.1-2, the IRS will allow electronic signatures on the following IRS forms on a permanent basis:
- 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 Internal Revenue Code Section 83(b)
Other Forms
Forms not specifically identified in either IRM 10.10.1-1 or IRM 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 this 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 (see IRM 10.10.1.6.1).
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.
Contacts
If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following:
