IRS to Allow E-Signatures Permanently
During the height of the COVID-19 pandemic, the IRS made a temporary change that allowed electronic signatures on some forms, documents, and returns. In October 2023, that change was made permanent in the Internal Revenue Manual (IRM).
The temporary change was first announced on August 28, 2020, when the IRS stated it would allow e-signatures on certain forms and documents until December 31, 2020. It was later extended to June 30, 2021. In April 2021, the IRS added more forms to the list that could be signed electronically and also extended the policy to December 31, 2021. In November of that year, an interim guidance memo (NHQ-10-1121-0005, Temporary Deviation from Handwritten Signature Requirement for Limited List of Tax Forms) further extended the change to October 31, 2023. In 2023, the IRS said they were working on extending the temporary policy yet again.
On October 17, that memo and its contents were fully incorporated into the IRM. Exhibit 10.10.1-2 of the IRM provides a list of forms for which an e-signature is acceptable. The policy officially applies to forms signed on or after August 28, 2020.
The use of e-signatures offers a flexibility to taxpayers and tax professionals that is secure and effective, and the use of such a feature saves time and resources. While it was a critical move during the pandemic, the use of digital signatures was something long sought after and will continue to be a tool for the IRS as they move towards becoming a fully digital agency.
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