Does The Irs Register Ink From Pens

This new process gives taxation professionals and taxpayers a safe option to electronically sign and upload critical documents without an in-person coming together

Go to know the IRS, its people and the issues that affect taxpayers

e-signature with a digital hand

By Sharyn Fisk
CL-20-06, Nov nineteen, 2020

It would be impossible to have experienced the 2020 tax filing season during the COVID-19 pandemic and not come away with a few lessons learned virtually how nosotros can improve IRS processes in means that volition as well protect health and safety.

A disquisitional lesson for the IRS reaffirms our electric current path: Digital options for taxpayers, tax professionals and our employees are fundamental to revenue enhancement administration.

I want to highlight one choice in particular – the electronic signature. The Taxpayer First Human action (TFA) of 2019 requires the IRS to provide digital signature options for Course 2848, Ability of Chaser, and Form 8821, Taxation Data Authorization.

These improvements will help private taxpayers, business concern taxpayers, and the tax professionals who serve them. These authorization forms are critical for tax professionals to either represent clients earlier the IRS or to fix prior year tax returns. Past signing the forms, taxpayers are giving revenue enhancement professionals or other third parties permission to access or view their tax information.

Currently, submitting and processing these say-so forms is a paper operation. Taxation professionals typically consummate the forms and taxpayers sign them with a pen. The forms are mailed or faxed to the IRS. The faxed forms are printed or distributed electronically to the staff in the Centralized Authorisation File (CAF) Unit. These teams review the forms for accuracy and fraud before adding the information to the CAF database.

In these uncertain times, keeping taxpayers and tax professionals safe is a top IRS priority.

Even earlier COVID-19, the IRS was working on CAF improvements and making the TFA requirements a reality. Here'south an important look at what's ahead:

In January, we plan to launch a new IRS.gov secure submission platform and a new page, "Submit Forms 2848 and 8821 Online," that volition allow tax professionals to upload third-party authority forms electronically.
Taxation professionals will enter their Secure Admission username and countersign or complete a Secure Access registration to authenticate their identities.
Taxpayers and tax professionals tin can sign the forms electronically or with ink, and so upload the image of the course to the IRS.

Let me make clear this new online submission process volition not eliminate the reviewing and processing time by the CAF staff. But it gives taxation professionals and taxpayers a rubber option to electronically sign and upload these critical documents without an in-person meeting. Especially in these uncertain times, keeping taxpayers and taxation professionals safe is a top IRS priority.

Just every bit tax professionals are required to do for every electronically filed taxation return, they'll demand to verify the taxpayer's identity if there's an electronic signature and the client is unknown to them. We're planning on using a similar process as outlined past Publication 1345, Handbook for Authorized IRS e-File ProvidersPDF. This verification process should be familiar to tax professionals.

This new IRS.gov third-political party dominance submission process will non be the only electronic option for Forms 2848 and 8821.

Adjacent summer, nosotros plan to launch a platform called the Tax Pro Account. At launch, the Tax Pro Business relationship will serve equally the point of entry for revenue enhancement professionals to electronically initiate and sign an online third-political party say-so grade.

That third-party authority class will electronically transfer into the client's IRS online account. Clients tin access their personal IRS account and electronically sign the document. The document goes directly to the CAF, posting immediately. There'south no expect fourth dimension, no backlog. The Revenue enhancement Pro Account is an electronic operation from beginning to cease.

When nosotros've completed these projects side by side year, revenue enhancement professionals volition take four submission options: upload on IRS.gov, initiate electronically via Tax Pro Account, postal service to IRS and fax to IRS. Because of the risk of fraud, nosotros cannot accept electronic signatures on mailed or faxed authority forms.

The IRS is committed to working with its stakeholders to better this process for taxpayers and tax professionals. We've been conference informational committees and professional person associations. We're working with revenue enhancement professionals to gather their feedback, and we'll acquit user focus groups.

Nosotros will be offer more details on the secure submission platform soon, including a sit-in webinar for tax professionals in December. I'm excited to watch these electronic signature options evolve and brand processes easier and safer for taxpayers and taxation professionals in the months ahead.

This electronic signature process is function of a larger endeavour underway at the IRS post-obit the Taxpayer Showtime Act. We are continuing to explore innovative ways to assistance taxpayers and work with the tax professional customs.

Sharyn Fisk
Director, Office of Professional Responsibility