Skip to content Show In the past two years, many traditional processes in the world of taxes and the law have been transformed by necessity, using digital signatures, or e-signatures, for many financial and legal documents. With many offices and courts re-opening and returning to pre-COVID processes, the IRS has recently reported that it will continue to allow taxpayers and representatives to use e-signatures on certain paper forms not eligible for electronic filing electronically. These forms where an e-signature is allowed must be signed and postmarked from August 28, 2020, to October 31, 2023. E-signatures gained acceptance to minimize the in-person contact between taxpayers and their representatives. The IRS will continue to accept a wide range of e-signatures, including:
Images of signatures will also be accepted formats, including tif, jpg, pdf, jpeg, Microsoft Office Suite, or Zip files. It is still considered a temporary situation (however, many states have made e-signing permanent) and applies only to specific forms that require paper filing. Among the common returns that allow for e-signing are:
There are other esoteric forms eligible for electronic signature. Most income tax returns (personal (Form 1040), businesses (Forms 1120 and 1065), and trusts and estates (Form 1041)) cannot use electronic signatures. Documents not eligible must still have handwritten signatures unless the form is electronically signed. Reference: Wolters Kluwer (March 8, 2020) “Taxpayers May Use E-Signatures on Certain Paper-Filed Forms” Website developed in accordance with Web Content Accessibility Guidelines 2.0. The IRS is temporarily allowing taxpayers and their representatives to use electronic or digital signatures (e-signatures) on certain paper forms that cannot be filed electronically. The relevant paper-filed forms for which this flexibility applies must be signed and postmarked from August 28, 2020, through October 31, 2023. Signatures on Forms and ReturnsTaxpayers are generally required to provide a handwritten signature in ink on paper-filed forms and returns. In response to the coronavirus (COVID-19) pandemic, however, the IRS has allowed e-signatures on certain paper-filed forms (listed below) to help minimize the need for in -person contact between taxpayers and their representative. The IRS announced late last year that it was extending the use of e-signatures for the relevant forms through October 31, 2023. Types of E-Signatures AllowedThe IRS will accept a wide range of e-signatures on the relevant forms. No specific technology is required to create or capture an electronic signature. Acceptable methods include:
The IRS will also accept images of signatures whether scanned or photographed, including file types supported by Microsoft 365 such as tiff, jpg, jpeg, pdf, Microsoft Office suite or Zip. Relevant Paper-Filed FormsThe temporary use of e-signatures applies only to the paper-filed forms listed below. It does not apply to any other paper-file form such as Form 1040 or Form 1120. Taxpayers and their representative must still provide handwritten signatures on any other paper-filed form, unless the form can be, and is, filed electronically. Temporary e-signatures are allowed on the following paper-filed forms:
Can you use DocuSign on tax returns?DocuSign can be used to send and sign many of the documents commonly required for tax and accounting purposes, including: IRS-approved tax forms.
Can forms be signed electronically?An electronic signature is a way to get approval on electronic documents. It can be in many forms and created by many technologies. Acceptable electronic signature methods include: A typed name typed on a signature block.
What documents can be signed electronically?What types of documents can be signed electronically?. Offer letters, new hire paperwork and employee policy updates.. Non-disclosure agreements, statements of work and sales contracts.. Purchase orders and master service agreements.. Real estate transactions.. Account opening paperwork.. Insurance policy applications and claims.. |