eSign - IRS eSign Compliance

IRS eSign Compliance, CPA e signature requirements, CPA esign requirements


Our click-to-sign has four levels of authentication
  1. Authenticate by email address, IP address, and digital signature of the device (default)
  2. Authenticate by email address, SMS cell phone text code, IP address, and digital signature of the device
  3. Authenticate by email address, Correct Question & Answer, IP address, and digital signature of the device. 
  4. KBA, Knowledge-based authentication, Equifax, $2.75 per successful request and $0.75 per failed request. The signer must answer three questions based on the credit report.
The sender can configure 2. threw 4. during the setup for the document's signers by editing the signer's settings.
 
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From the IRS
Below Green meets 1. default above
Blow Bold Green meets 2. To 4. above 

Are taxpayers required to sign Forms 8878 or 8879 electronically?
No. Taxpayers may continue to use a handwritten signature and return the form to the ERO in person via U.S. mail, private delivery, fax, email, or an Internet website.

What e-signature methods are available?
The ERO's software dictates the e-signature method used to sign the form. Regardless of the method used, the electronic record must be tamper-proof once it is e-signed. Some examples of methods used to capture an e-signature include: 
  • A handwritten signature captured on an e-signature pad;
  • A handwritten signature, mark, or command input on a display screen using a stylus device;
  • A digitized image of a handwritten signature that is attached to an electronic record;
  • A typed name;
  • A shared secret, such as a PIN, password, or secret code, is used to sign the electronic record;
  • A digital signature; or
  • A mark was captured as a graphic.
What are the ERO's responsibilities concerning e-signature?
If the taxpayer uses the e-signature option, the ERO must use software that includes identity verification. The software must record the following data:
  • Digital image of the signed form;
  • Date and time of the signature;
  • Taxpayer's computer IP address (remote transaction only);
  • Taxpayer's login identification — user name (remote transaction only); ICFiles user is the signer
  • Results of the identity verification check to validate that the taxpayer's ID verification was successful; and
  • The e-signature method was used to sign the record.   
The ERO is also responsible for maintaining a tamper-proof record in a secure, access-controlled storage system for three years from the due date of the return or three years from the IRS return receipt date, whichever is later. EROs must be able to retrieve and reproduce legible hard copies of the signed form.


Your state or local government might have different requirements.