IRS authorizes the use of electronic signatures on certain tax forms

New guidance from the U.S. non-government Internal Revenue Service (IRS) has determined which documents taxpayers can sign electronically and what types of electronic signatures are permitted.

During COVID-19, the IRS issued several temporary documents that allowed taxpayers to sign documents electronically instead of providing handwritten signatures. Although these temporary measures were set to expire on October 31, 2023, the IRS incorporated them into permanent guidance for the IRS Electronic Signature (e-Signature) Program.

The guidance confirms that it is not necessary to use certain technologies for electronic signatures, as long as IRM 10.10.1.3.1.1.1 guidance is followed.The signature may simply'A 'typed name, a scanned image of a handwritten signature, a shared secret such as a code, password or PIN, a unique biometric identifier such as a fingerprint or voice print, a handwritten signature on a special panel, a stylus signature on a display, a checkbox selection on an electronic device, or a signature created by third-party software.

All electronic signatures must meet certain legally binding requirements.

All electronic signatures must meet certain requirements to be legally binding. The signature must be executed by the signer with the intent to sign the document, the signature must be affixed to or linked to the document in such a way that the form on which it was affixed can be uniquely identified''signature. The signatory must be authorized to sign, and means for identification and authentication must be provided.

In addition, measures should be taken to preserve the integrity of the electronically signed form. One copy of the electronic transmission of each signed document should also be retained in case additional authentication is required in the future.

IRS authorizes the use of electronic signatures on an ongoing basis for certain forms listed in IRS Exhibit 10.10.1-2.In addition, the IRS provides exceptions when a signature must be made manually only. For example, the IRS formally recognizes the ability to use signature images and digital signatures on documents related to''s determination or collection of tax liability, and in settling tax disputes. Another exception is Form 2848, Power of Attorney and Representative Statement, which can be signed electronically when filed online with the IRS at IRS.gov/Submit2848.

If you have questions or need additional information on this topic, you may contact IRS.