E-SIGNATURE ABILITY NOW PERMANENT

The IRS quietly made a temporary COVID-19 provision permanent. The temporary relief was set to expire at the end of this month, but on October 17 the IRS updated its Internal Revenue Manual entry on electronic signatures, reflecting that the temporary guidance has now been “fully incorporated” into the manual.

10.10.1.3.1.1 (10-17-2023)

Acceptable Forms of Electronic Signatures

1. Electronic signatures can take many forms and can be created by many different technologies. No specific technology or form of signature is required.
2. Any electronic sound, symbol, or process can be used as the form of electronic signature provided the form of electronic signature is permitted for use on the specific IRS document by IRS guidance.
3. If permitted by IRS guidance on the specific IRS document, the following forms of electronic signature are currently permissible for use:
   1. A typed name that is typed within or at the end of an electronic record, such as typed into a signature block.
   2. A scanned or digitized image of a handwritten signature that is attached to an electronic record.
   3. A shared secret, such as a code, password, or PIN.
   4. A unique biometric-based identifier, such as a fingerprint, voice print, or a retinal scan.
   5. A handwritten signature input onto an electronic signature pad.
   6. A handwritten signature, mark, or command input on a display screen by means of a stylus device.
   7. A selected checkbox on an electronic device such as a computer or tablet.
   8. A signature created by a third party software.

Note:

See Exhibit 10.10.1-1, Current Approved Methods, for a complete listing of approved signature methods and their related forms.

Exhibit 10.10.1-1

Current Approved Methods

The following signature methods have been approved in earlier IRS regulations, publications, or other documents and continue to be accepted by the IRS under current IRS guidance:

Deviation from Handwritten Signature Requirement for Limited List of Tax Forms Memorandum

The forms to which this flexibility applies are listed below. These forms must be signed and postmarked on August 28, 2020, or later. Electronic and digital signatures appear in many forms when printed and may be created by many different technologies. No specific technology is required for these forms.

• Form 11-C, Occupational Tax and Registration Return for Wagering.
• Form 637, Application for Registration (For Certain Excise Tax Activities).
• Form 706, U.S. Estate Tax Return.
• Form 706-A, United States Additional Estate Tax Return.
• Form 706-GS (D), Generation-Skipping Transfer Tax Return for Distributions.
• Form 706-GS (D-1), Notification of Distribution from a Generation-Skipping Trust.
• Form 706-GS (T), Generation-Skipping Transfer Tax Return for Terminations.
• Form 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts.
• Form 706 SCHEDULE R-1, Generation-Skipping Transfer Tax.
• Form 706-NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return.
• Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.
• Form 730, Monthly Tax Return for Wagers.
• Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.
• Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return.
• Form 1120-C, U.S. Income Tax Return for Cooperative Associations.
• Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation.
• Form 1120-H, U.S. Income Tax Return for Homeowners Associations.
• Form 1120-IC DISC, Interest Charge Domestic International Sales – Corporation Return.
• Form 1120-L, U.S. Life Insurance Company Income Tax Return.
• Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons.
• Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return.
• Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts.
• Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies.
• Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B).
• Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship.
• Form 1128, Application to Adopt, Change or Retain a Tax Year.
• Form 2678, Employer/Payer Appointment of Agent.
• Form 3115, Application for Change in Accounting Method.
• Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts.
• Form 3520-A, Annual Return of Foreign Trust with a U.S. Owner.
• Form 4421, Declaration – Executor’s Commissions and Attorney’s Fees.
• Form 4768, Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes.
• Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues.
• Form 8038-G, Information Return for Government Purpose Tax-Exempt Bond Issues.
• Form 8038-GC; Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales.
• Form 8283, Noncash Charitable Contributions.
• Form 8453 series, Form 8878 series, and Form 8879 series regarding IRS e-file Signature Authorization Forms.
• Form 8802, Application for United States Residency Certification.
• Form 8832, Entity Classification Election.
• Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent.
• Form 8973, Certified Professional Employer Organization/Customer Reporting Agreement.

Elections made pursuant to Internal Revenue Code Section 83(b).