Electronic Signature for Tax Forms

For tax preparers authorized to file taxes on their clients’ behalf, Docusign eSignature conforms with IRS requirements for eSigning Forms 8878 and 8879, IRS e-file Signature Authorization forms. Electronic return originators (EROs) can use eSignature to deliver better customer service, minimize the possibility of errors on their clients’ returns, and create a speedier workflow.

Read below for answers to questions around electronic signatures and tax forms.

Can I electronically sign my tax forms?

It depends. Form 1040, the U.S. Individual Income Tax Return, uses an electronic signature when it is filed electronically, whether the form is self-prepared by a taxpayer or prepared by a tax professional. According to the IRS, more than 90% of Form 1040s are filed and signed electronically.

However, Form 1040 is just one of a long list of possible forms filed with the IRS and some of these forms typically require an ink signature. The COVID-19 pandemic dramatically increased demand from taxpayers and representatives for securing handwritten signatures electronically. In response, the United States Internal Revenue Service is allowing the use of electronic tax form signatures for some tax forms.

Which tax forms can I submit with electronic signatures?

The following IRS online forms can be submitted with electronic signature provided they were signed and postmarked on August 28, 2020 or later:

• 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 (and Generation-Skipping Transfer) Tax Return

• Form 706-A, U.S. 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, U.S. 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. Income Tax Return for Real Estate Mortgage Investment Conduit

• 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 Information 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 Tax-Exempt Governmental Bonds

• 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 U.S. 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)

The temporary policy allowing e-signature for certain forms described below has been integrated into Internal Revenue Manual (IRM) 10.10.1, IRS Electronic Signature (e-Signature) Program.

Digital, self-service tools from the US government 

The US government has passed an act called the 21st Century Integrated Digital Experience Act (“21st Century IDEA”) which created a set of minimum functionalities and security standards that federal agencies must meet.  The agencies must offer digital versions of paper-based citizen services and accept digital signatures, therefore allowing citizens to complete transactions digitally. The goal is to provide a more convenient and streamlined experience for citizens by enabling them to sign documents electronically when interacting with government services. 

In addition, the IRS Inflation Reduction Act (IRS IRA) was released in 2022, which focuses on creating digital forms, expanding digital services and digitization and creating viewable digitized data. 

When fully implemented across every government agency, these digital, self-service tools are expected to save significant taxpayer dollars and dramatically improve the experience of interacting with government websites. The IRS IRA and the 21st Century IDEA Act reaffirm the current national digital transformation trend which was further accelerated by legislation recently signed in California (AB 1879), which authorizes a taxpayer to sign all California Board of Equalization documents using an electronic signature.

Docusign for accountants and tax specialists

In addition to helping get tax forms signed and filed in an efficient, timely and safe manner, DocuSign helps accountants and tax specialists with fast, efficient agreement processes for LLC formation, confidentiality agreements, POAs and more.