Form 8879, IRS e-file Signature Authorization, is used to authorize an Electronic Return Originator (ERO) to electronically file a taxpayer's return. It allows the taxpayer to provide their signature for electronic filing without physically signing the paper form. If you're setting up as an ERO (Electronic Return Originator), here's how to use Form 8879:
Steps for ERO Setup Using Form 8879
Ensure you are eligible as an ERO:
You need to be an authorized e-file provider with the IRS to file returns electronically. You must have an active e-file application approved by the IRS to proceed.
Prepare Form 8879:
Open an existing return > Go to Form 8879
Taxpayer Information: Fill out the taxpayer’s name, address, and Social Security number (or Employer Identification Number).
Tax Return Details: Include information about the tax return, including the tax year, the form being filed (e.g., Form 1040, 1041), and the total amount of taxes due or refund.
Scroll to the furthest down section of the form.
ERO's Details: As the ERO, your details must be filled in. This includes your name or firm name, the address, and the IRS e-file provider number.
Taxpayer Signature: The taxpayer (or their authorized representative) must sign the form, authorizing the e-filing and confirming that the information is true, correct, and complete.
Signature Authorization:
The taxpayer’s signature on Form 8879 is essential. It grants permission for the ERO to electronically file the tax return.
This signature can be provided in different ways depending on the setup:
Electronically: Many tax software programs allow for electronic signatures (via a secure process).
Physically: If necessary, the taxpayer can sign a printed version of the form.
ERO’s Signature:
The ERO (or an authorized representative) also needs to sign the form, confirming that the return was filed electronically on behalf of the taxpayer.
Transmit the Form to the IRS:
After obtaining the necessary signatures, the ERO will submit the return electronically through the IRS e-file system.
Retain a copy of Form 8879 for your records as part of the documentation for the filed tax return.
Recordkeeping:
The ERO must keep the signed Form 8879 for at least three years, as it is proof of the taxpayer’s consent to e-file their return.
Key Notes:
Security: When handling Form 8879, ensure proper security measures are in place, especially if the form contains sensitive taxpayer information.
Authorization: Without the signed Form 8879, the IRS will not accept the e-filed return, as it lacks the necessary authorization to file electronically.
IRS E-file Signature Authorization: This form is necessary for both individual and business returns, and the IRS requires it to ensure that taxpayers have provided consent for e-filing.
By following these steps, you can set up and use Form 8879 for ERO, ensuring compliance with IRS e-file rules.