More tax preparers are offering electronic signatures for Forms 8879 than ever. Is it time to jump on the bandwagon? Should you move to electronic signatures for Form 8879?
Let’s start with the facts. The IRS does allow Form 8879 to be signed electronically, but there’s a catch. The IRS requires that the electronic signature software you use must include identity verification. Software providers, based on compliance guidance from the NIST, use knowledge-based authentication (KBA) questions to meet the requirement. This adds friction and cost. Clients fail KBA questions between 10% and 15% of the time. And firms have to pay several dollars per Form 8879 for the KBA loop. So is moving to electronic signatures worth it?
Some clients will demand an all-electronic experience. Some clients will prefer electronic but won’t be able to accurately answer the KBA questions. And some clients will insist on wet signatures. Most firms will have a mix of all three. As long as you have some clients who’d rather sign on screen, adding eSignature is worth it — because not adding the option to eSign could send those clients elsewhere.
With an eSign option, you can tailor a signature method to satisfy every client’s preference. Just add a question on your annual tax questionnaire to find out how they want to handle it.
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If you want to learn more about Liscio’s eSignature option, check out this two-minute demo. And if you want to learn even more about Liscio and their eSignautre processes for tax season, check out this webinar with Insightful Accountant tomorrow, February 6 at 2:00 p.m. Eastern Time. Register here.