Authored by RSM US LLP
The IRS has confirmed that the signature guidance released in a response to the COVID pandemic has been moved into the Internal Revenue Manual where it is now standard operating procedure. The IRS has also expanded on-line accounts to include businesses operating as sole proprietors and added features to the Tax Pro account to enable practitioners to better manage power of attorney authorizations.
The IRS has updated the Internal Revenue Manual (IRM 10.10.1) to expand and make permanent authorizations for the use of digital signatures. Prior authorization applied only to forms signed and postmarked between Aug. 28, 2020 and Dec. 31, 2023. The IRM provides that a compliant e-signature satisfies requirements for legally binding electronic signatures outlined in IRM 10.10.1.3.1 and provides acceptable forms of e-signature.
IRS has designated that the following 41 forms can be electronically signed:
The IRS Business Tax account for sole proprietors went live this month. The new business tax account is for sole proprietors who file their business tax returns with an employer identification number. This initial version of the business tax account offers limited functionality. It allows taxpayers to view company information, grant employees access to the account and request a tax compliance check for the business.
Tax pro accounts have been enhanced to link to a practitioner’s Centralized Authorization File (CAF) number. This now allows a practitioner to review all third-party authorizations attached to their CAF number and to withdraw authorizations no longer needed. The IRS plans to continue enhancing capabilities for all its online services in the coming months as part of the agency’s modernization efforts.
Taxpayers and practitioners with any questions or concerns about using an e-signature or IRS online accounts should contact one of the authors listed below.
This article was written by Alina Solodchikova, Evan Stone, John Cardone, Kori Pitts and originally appeared on 2023-10-24.
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