6695 signature requrements and penalty

This blog provides information on the 6695(b) failure to sign a return penalty and the IRS electronic signature procedures. Although this penalty has been largely ignored, it will be ignored no longer given the interest of the IRS in the 6694 penalties and the severity of those penalties. It is likely that the 6694(b) $5,000 penalty for reckless conduct will take into account the failure to sign a tax return. I have seen the IRS treat the failure to sign as one of the important facts taken into consideration in criminal fraud examinations of return preparers. Under the current 6694 regulations, you cannot avoid the 6694 penalty by not signing the tax return. If you have any issues on that point, please send an e-mail to ab@irstaxattorney.com

6695(b) FAILURE TO SIGN RETURN. --Any person who is a tax return preparer with respect to any return or claim for refund, who is required by regulations prescribed by the Secretary to sign such return or claim, and who fails to comply with such regulations with respect to such return or claim shall pay a penalty of $50 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to documents filed during any calendar year shall not exceed $25,000.



A tax return preparer who fails to sign a return or a refund claim before it is presented to the taxpayer for signature is subject to a $50 penalty for each such failure (Code Sec. 6695(b), as amended by the Small Business Tax Act of 2007 (P.L. 110-28) and Reg. §1.6695-1(b)). The regulations no longer require a manual signature. Return preparers may provide copies of returns for recordkeeping purposes without a manual signature, as long as the return copies are in an electronic or digital format prescribed by the IRS.

If more than one preparer is involved in the preparation of the return or claim for refund, the individual preparer with the primary responsibility for the overall accuracy of the preparation of the return or claim for refund must sign it, not another individual who may be responsible for its mathematical accuracy (Reg. §1.6695-1(b)(2)).

A substitute preparer may sign a return or refund claim when the original preparer is unavailable if the substitute preparer first reviews the information obtained by the original preparer and also reviews the original preparer's preparation of the return or refund claim (Reg. §1.6695-1(b)(1)).

The IRS is required to develop procedures for the acceptance of signatures in digital or other electronic form, effective July 22, 1998 (Code Sec. 6061(b)). Until such procedures are in place, the IRS is authorized to:
(1) waive the signature requirement for designated documents or returns; or

(2) provide for alternative signing methods.
Interim guidance regarding tax preparer signature requirement. Interim guidance has been issued for returns and claims for refund filed after December 31, 2007 identifying which returns and claims for refunds are required to be signed by a tax return preparer in order to avoid the Code Sec. 6695(b) penalty. The tax return preparer must sign the return or claim for refund after it is completed and before it is presented to the taxpayer for signature. If the preparer is unavailable to sign the return or claim another tax preparer must review its entire preparation and sign it before presenting it to the taxpayer. If more than one tax return preparer is involved with preparing the return or refund claim, the preparer having primary responsibility for its overall substantive accuracy must sign it (Notice 2008-12, I.R.B. 2008-3, December 31, 2007.

Tax identification numbers required. A tax return preparer who is required to sign a return or refund claim must also provide his or her tax identification number (TIN). The identifying number of an individual return preparer is the individual's social security number (Reg. §1.6109-2(a)). An individual tax return preparer can elect to use an alternative to the social security number as an identifying number. The alternative number will be prescribed by the IRS in forms, instructions or other guidance (Code Sec. 6109(a)(4), as amended by P.L. 110-28; see also ¶39,965.04). A $50 penalty is also imposed on a tax return preparer who fails to inscribe his or her TIN.

If the return preparer is employed or engaged by someone else to prepare the return or if the preparer is a member of a partnership of two or more preparers, the identifying number of the employer or partnership must also be entered on the return or claim for refund. Failure to provide an employer's identifying number may result in the imposition of a $50 penalty for each such failure (Code Sec. 6695(c), as amended by P.L. 110-28 and Reg. §1.6695-1(c)). Both penalties are excused where the failure is due to reasonable cause and not to willful neglect. The maximum penalty imposed on any person with respect to documents filed during any calendar year will not exceed $25,000 for each penalty (Code Sec. 6695(b) and (c), as amended by P.L. 110-28).


Signing of Individual Returns: Electronic signatures

The IRS Restructuring and Reform Act of 1998 (P.L. 105-206) requires the IRS to develop procedures for the acceptance of signatures in digital or other electronic form (Code Sec. 6061(b)). Until the procedures are in place, the IRS is authorized to: (1) waive the requirement of a signature for designated types or classes of returns, declarations, statements, or other documents or (2) provide for alternative methods of signing these items.

An alternative method of signature will be treated identically, for both civil and criminal purposes, as a signature on a paper form. The IRS must publish guidance to define and implement any signature waiver or alternative signature methods (Code Sec. 6061(b)(2) and Code Sec. 6061(b)(3)).

The IRS's e-file program allows taxpayers to file their returns electronically using an Authorized IRS e-file provider, a personal computer or, for those who are eligible, Free File. (The IRS announced that it would discontinue the TeleFile program (which allowed taxpayers to file their returns electronically using the telephone) after August 16, 2005 (Announcement 2005-26, 2005-1 CB 969)). Tax professionals accepted into the electronic filing program, called authorized IRS e-file Providers, are the electronic return originators (EROs) who transmit tax return information to the IRS. With respect to e-file signature alternatives, the Self-Select PIN Method allows individuals to electronically sign an e-file return by selecting a five-digit PIN. The Practitioner PIN Method is an e-file signature option for those who use an ERO. For more information on the IRS e-file program

The IRS will allow EROs to sign the following forms by rubber stamp, mechanical device (such as signature pen), or computer software program: Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Return; Form 8878, IRS e-file Signature Authorization for Form 4868 or Form 2350; and Form 8879, IRS e-file Signature Authorization, for any Form 8453, Form 8878, or Form 8879 filed on or after October 15, 2007 (Notice 2007-79. These alternative methods of signing authorized in Notice 2007-79 must include either a facsimile of the individual ERO's signature or of the ERO's printed name. EROs using one of these alternative means are personally responsible for affixing their signatures to returns or requests for extension. Notice 2007-79 applies only to EROs that sign Form 8453, Form 8878, or Form 8879, and does not alter the signature requirements for any other type of document currently required to be manually signed, such as elections, applications for changes in accounting method, powers of attorney, or consent forms. It also does not alter the requirement that Form 8453, Form 8878, or Form 8879 be signed by the taxpayer making these forms by handwritten signature or other authorized means (Notice 2007-79).



Notice 2008-12 , I.R.B. 2008-3, December 31, 2007.

Penalties: Failure by preparer to sign return. --


This notice provides guidance to the public regarding implementation of the tax return preparer signature requirement penalty provisions under section 6695(b) of the Internal Revenue Code, as amended by the Small Business and Work Opportunity Tax Act of 2007.



BACKGROUND

The Small Business and Work Opportunity Tax Act of 2007 (the Act), Pub. L. No. 110-28, 121 Stat. 190, was enacted on May 25, 2007. Section 8246 of the Act amended several provisions of the Code, including section 6695(b), to extend the application of the income tax return preparer penalties to all tax return preparers. As amended by the Act, section 6695(b) imposes a penalty on a tax return preparer of any return or claim for refund who fails to sign a return when required by regulations prescribed by the Secretary, unless it is shown that the failure is due to reasonable cause and not due to willful neglect. The penalty under section 6695(b) is $50 for each failure to sign, with a maximum of $25,000 per person imposed with respect to each calendar year. The amendments to section 6695(b) made by section 8246 of the Act are effective for tax returns and claims for refund prepared after May 25, 2007.



INTERIM AND PLANNED GUIDANCE

The Treasury Department and the Internal Revenue Service intend to issue regulations that implement the signature requirements under section 6695(b) for certain 2008 tax year returns and claims for refund. In advance of these regulations, guidance is being issued to (1) identify the returns and claims for refund required to be signed by a tax return preparer in order to avoid a section 6695(b) penalty under current regulations, and (2) identify the returns and claims for refund that will be required to be signed by a tax return preparer in order to avoid a section 6695(b) penalty under future regulations published by the Treasury Department and IRS. This interim guidance will apply until further guidance is issued and tax return preparers may rely on the interim guidance in this notice.



A. Signing Tax Return Preparer

For purposes of section 6695(b), an individual who is a tax return preparer with respect to a return of tax or claim for refund of tax listed below in paragraph (B)(1) of this notice shall sign the return or claim for refund after it is completed and before it is presented to the taxpayer (or nontaxable entity) for signature. If the tax return preparer is unavailable for signature, another tax return preparer shall review the entire preparation of the return or claim for refund, and then shall sign the return or claim for refund.

If more than one tax return preparer is involved in the preparation of the return or claim for refund, the individual tax return preparer who has the primary responsibility as between or among the preparers for the overall substantive accuracy of the preparation of such return or claim for refund shall be considered to be the tax return preparer for purposes of section 6695(b).



B. Forms Requiring Signature of Tax Return Preparer

(1) Consistent with existing regulations, in order to avoid the imposition of a penalty under section 6695(b), a signing tax return preparer described above in paragraph (A) of this notice must provide a signature on any income tax returns or claim for refund of income tax that are filed after December 31, 2007, including but not limited to the following:
 Form 990-T, Exempt Organization Business Income Tax Return

 Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation

 Form 1040, U.S. Individual Income Tax Return

 Form 1040A, U.S. Individual Income Tax Return

 Form 1040-C, U.S. Departing Alien Income Tax Return

 Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents

 Form 1040NR, U.S. Nonresident Alien Income Tax Return

 Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents

 Form 1040-PR, Planilla para la Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona fide de Puerto Rico)

 Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)

 Form 1040X, Amended U.S. Individual Income Tax Return

 Form 1041, U.S. Income Tax Return for Estates and Trusts

 Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts

 Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts

 Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons

 Form 1065, U.S. Return of Partnership Income

 Form 1065-B, U.S. Return of Income for Electing Large Partnerships

 Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return

 Form 1120, U.S. Corporation Income Tax Return

 Form 1120-C, U.S. Income Tax Return for Cooperative Associations

 Form 1120-F, U.S. Income Tax Return of a Foreign Corporation

 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 1120IC-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-POL, U.S. Income Tax Return for Certain Political Organizations

 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 1120S, U.S. Income Tax Return for an S Corporation

 Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B)

 Form 1120X, Amended U.S. Corporation Income Tax Return

 Form 2438, Undistributed Capital Gains Tax Return

(2) In the absence of Treasury regulations requiring signature, a signing tax return preparer described above in paragraph (A) of this notice will not be subject to the penalty under section 6695(b) with respect to tax returns or refund claims for taxes other than income taxes that are filed after December 31, 2007 but on or before December 31, 2008, including the filing of the following returns:
 Form CT-1, Employer's Annual Railroad Retirement Tax Return

 Form CT-2, Employee Representative's Quarterly Railroad Tax Return

 Form 11-C, Occupational Tax and Registration Return for Wagering

 Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return

 Form 706-A, United States Additional Estate Tax Return

 Form 706-D, United States Additional Estate Tax Return Under Code Section

 Form 706-GS(D), Generation-Skipping Transfer Tax Return For Distributions

 Form 706-GS(T), Generation-Skipping Transfer Tax Return For Terminations

 Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return - Estate of nonresident not a citizen of the United States Trusts

 Form 706-QDT, United States Estate Tax Return for Qualified Domestic Trusts

 Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return

 Form 720, Quarterly Federal Excise Tax Return

 Form 720X, Amended Quarterly Federal Excise Tax Return

 Form 730, Monthly Tax Return for Wagers

 Form 843, Claim for Refund and Request for Abatement

 Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return

 Form 940-PR, Planilla para la Declaración Federal ANUAL del Patrono de la Contribución Federal para el Desempleo (FUTA)

 Form 941, Employer's QUARTERLY Federal Tax Return

 Form 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono

 Form 941-SS, Employer's QUARTERLY Federal Tax Return

 Form 941-M, Employer's MONTHLY Federal Tax Return

 Form 943, Employer's Annual Federal Tax Return for Agricultural Employees

 Form 943(PR), Planilla Para la Declaración ANUAL De La Contribución Del Patrono De Empleados Agrícolas

 Form 944, Employer's ANNUAL Federal Tax Return

 Form 944-PR, Planilla para la Declaración ANUAL de la Contribución Federal del Patrono 944(SP), Declaración Federal ANUAL de Impuestos del Patrono o Empleador

 Form 944-SS, Employer's ANNUAL Federal Tax Return

 Form 945, Annual Return of Withheld Federal Income Tax

 Form 1040 (Schedule H), Household Employment Taxes

 Form 1040-PR (Anexo H-PR), Contribuciones sobre el Empleo de Empleados Domesticos

 Form 2290, Heavy Highway Vehicle Use Tax Return

 Form 2290(FR), Declaration d'Impot sur L'utilisation des Vehicules Lourds sur les Routes

 Form 2290(SP), Declaración del Impuesto sobre el Uso de Vehículos Pesados en las Carreteras

 Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the Internal Revenue Code

 Form 5330, Return of Excise Taxes Related to Employee Benefit Plans

 Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts

 Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies

 Form 8725, Excise Tax on Greenmail

 Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests

 Form 8849, Claim for Refund of Excise Taxes

 Form 8876, Excise Tax on Structured Settlement Factoring Transactions

 Form 8924, Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests

The tax return preparer shall sign the return in the manner prescribed by the Commissioner in forms, instructions, or other appropriate guidance.

The Treasury Department and IRS intend to issue regulations on or before December 31, 2008 requiring signatures under section 6695(b) for all the above listed forms that are filed after December 31, 2008.

Information on the preparer signature requirement for electronically filed returns will be announced in IRS publications, instructions, and information posted electronically on the IRS.gov website.



EFFECTIVE DATE

This Notice is effective as of January 1, 2008 .



CONTACT INFORMATION

The principal authors of this notice are Matthew S. Cooper and Michael E. Hara of the Office of the Associate Chief Counsel (Procedure and Administration). For further information regarding this notice contact Mr. Cooper at 202-622-4940 or Mr. Hara at (202) 622-4910 (not toll-free calls).


Notice 2007-79 , I.R.B. 2007-42, 809, October 15, 2007.

SECTION I. PURPOSE

This notice provides that the Internal Revenue Service will allow Electronic Return Originators (EROs) to sign the following forms by rubber stamp, mechanical device (such as signature pen), or computer software program: Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Return; Form 8878, IRS e-file Signature Authorization for Form 4868 or Form 2350; and Form 8879, IRS e-file Signature Authorization.



SECTION 2. BACKGROUND

Section 6061 of the Internal Revenue Code and Treas. Reg. §1.6061-1(a) generally provide that any tax return, statement, or other document shall be signed in accordance with forms, instructions, or regulations prescribed by the Secretary. Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns, sets forth the procedures for completing the Form 8453, Form 8878, and Form 8879. If providing the signature on a paper declaration, the taxpayer and the ERO (and the paid preparer if different from the ERO) must complete and sign the Form 8453 before the electronic data portion of the return is submitted. Taxpayers may wish to sign their returns electronically, but may choose to authorize their ERO to enter their Personal Identification Number (PIN) in the electronic return record by completing the appropriate IRS e-file signature authorization form. Form 8879 authorizes an ERO to enter PINs on Individual Income Tax Returns, and Form 8878 authorizes an ERO to enter PINs on Forms 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return; and Form 2350, Application for Extension of Time To File U.S. Income Tax Return.



SECTION 3. REQUIREMENTS FOR USE OF ALTERNATIVE METHODS OF SIGNING

The alternative methods of signing that this notice authorizes must include either a facsimile of the individual ERO's signature or of the ERO's printed name. EROs using one of these alternative means are personally responsible for affixing their signatures to returns or requests for extension.

This notice applies only to EROs that sign Form 8453, Form 8878, or Form 8879, and does not alter the signature requirements for any other type of document currently required to be manually signed, such as elections, applications for changes in accounting method, powers of attorney, or consent forms. In addition, this notice does not alter the requirement that Form 8453, Form 8878, or Form 8879 be signed by the taxpayer making these forms by handwritten signature or other authorized means.



SECTION 4. EFFECTIVE DATE

This notice applies to any Form 8453, Form 8878, or Form 8879 filed on or after October 15, 2007.



SECTION 5. DRAFTING INFORMATION

The principal author of this notice is Michael E. Hara of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this notice, contact Michael E. Hara at (202) 622-4910 (not a toll-free call).



Rev. Proc. 2005-39 , I.R.B. 2005-28, 82, July 11, 2005.


SECTION 1. PURPOSE

This revenue procedure sets out the circumstances under which facsimile signatures may be used on (1) any form within the Form 94X series (including, but not limited to, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return; Form 941, Employer's Quarterly Federal Tax Return; Form 943, Employer's Annual Federal Tax Return for Agricultural Employees; and Form 945, Annual Return of Withheld Federal Income Tax); (2) Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons; (3) Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips; (4) Form CT-1, Employer's Annual Railroad Retirement Tax Return; or (5) any variant of these forms ( e.g., Form 941c, Supporting Statement to Correct Information; Form 941-SS, Employer's Quarterly Federal Tax Return).



SECTION 2. BACKGROUND

Section 6061(a) of the Internal Revenue Code generally provides that any return, statement, or other document required to be made under any provision of the internal revenue laws or regulations shall be signed in accordance with forms or regulations prescribed by the Secretary.

Section 6061(b) authorizes the Secretary to develop procedures for the acceptance of signatures in digital or other electronic form. Section 6061(b)(1)(B) provides that the Secretary may provide for alternative methods of signing returns, declarations, statements, or other documents. Section 6061(b)(2) provides that, notwith-standing any other provision of law, any return, declaration, statement, or other document signed under an approved alternative method will be treated for all purposes as an original signature.

Section 31.6061-1 of the Regulations on Employment Taxes and Collection of Income Tax at Source provides that employment tax returns must be signed by:

(a) the individual, if the person required to make the return is an individual;

(b) the president, vice president, or other principal officer, if the person required to make the return is a corporation;

(c) a responsible and duly authorized member or officer having knowledge of its affairs, if the person required to make the return is a partnership or other unincorporated organization; or

(d) the fiduciary, if the person required to make the return is a trust or estate.

Returns may also be signed for the taxpayer by a duly authorized agent in accordance with section 31.6011(a)-7 of the regulations.

Section 31.6011(a)-7 provides that an employment tax return may be made by an agent in the name of the person required to make the return if an acceptable power of attorney is filed with the Service and if the return includes all taxes required to be reported by such person on such return for the period covered by the return.

Section 301.6061-1(b) of the Regulations on Procedure and Administration provides that the Secretary may prescribe in forms, instructions, or other appropriate guidance, the method of signing any return, statement, or other document required to be made under any provision of the internal revenue laws or regulations.



SECTION 3. SCOPE AND APPLICATION

Corporate officers or duly authorized agents may sign any of the following forms by facsimile ( i.e., by rubber stamp, mechanical device, or computer software program): (1) the Form 94X series; (2) Form 1042; (3) Form 8027; (4) Form CT-1; or (5) any variant of such designated form ( e.g., Form 941c; Form 941-SS). Officers or agents using a facsimile means of signature are personally responsible for ensuring that their facsimile signature is affixed to returns. The person filing the form must retain a letter, signed by the officer or agent authorized to sign the return, declaring under penalties of perjury that the facsimile signature appearing on the form is the signature adopted by the officer or agent and that the facsimile signature was affixed to the form by the officer or agent or at his or her direction. The letter must list each return by name and identifying number. The letter should not be sent to the Internal Revenue Service unless specifically requested by the Service. The letter shall be maintained for at least four years after the due date of such tax as the return relates, or the date such tax is paid, whichever is later.



SECTION 4. EFFECT ON OTHER DOCUMENTS

Rev. Rul. 82-29, 1982-1 C.B. 200, is modified to add the forms designated above to the list of forms for which facsimile signatures are accepted by the Service. Rev. Rul. 82-29 is clarified as to the definition of facsimile signature, and is modified to delete the requirement that each group of returns forwarded to the Internal Revenue Service be accompanied by a list of such returns and a letter, signed by the person authorized to sign the returns, adopting the signature on the returns.



SECTION 5. EFFECTIVE DATE

This revenue procedure is effective for any of the designated forms filed with the Internal Revenue Service on or after July 1, 2005.



SECTION 6. DRAFTING INFORMATION

The principal author of this revenue procedure is Richard Charles Grosenick of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this revenue procedure, contact Richard Charles Grosenick at (202) 622-7950 (not a toll-free call).

Signing of Individual Returns: Electronic signatures

The IRS Restructuring and Reform Act of 1998 (P.L. 105-206) requires the IRS to develop procedures for the acceptance of signatures in digital or other electronic form (Code Sec. 6061(b)). Until the procedures are in place, the IRS is authorized to: (1) waive the requirement of a signature for designated types or classes of returns, declarations, statements, or other documents or (2) provide for alternative methods of signing these items (see for example Notice 2000-19 and Rev. Proc. 2005-39.

An alternative method of signature will be treated identically, for both civil and criminal purposes, as a signature on a paper form. The IRS must publish guidance to define and implement any signature waiver or alternative signature methods (Code Sec. 6061(b)(2) and Code Sec. 6061(b)(3)).

The IRS's e-file program allows taxpayers to file their returns electronically using an Authorized IRS e-file provider, a personal computer or, for those who are eligible, Free File. (The IRS announced that it would discontinue the TeleFile program (which allowed taxpayers to file their returns electronically using the telephone) after August 16, 2005 (Announcement 2005-26, 2005-1 CB 969)). Tax professionals accepted into the electronic filing program, called authorized IRS e-file Providers, are the electronic return originators (EROs) who transmit tax return information to the IRS. With respect to e-file signature alternatives, the Self-Select PIN Method allows individuals to electronically sign an e-file return by selecting a five-digit PIN. The Practitioner PIN Method is an e-file signature option for those who use an ERO. For more information on the IRS e-file program.

The IRS will allow EROs to sign the following forms by rubber stamp, mechanical device (such as signature pen), or computer software program: Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Return; Form 8878, IRS e-file Signature Authorization for Form 4868 or Form 2350; and Form 8879, IRS e-file Signature Authorization, for any Form 8453, Form 8878, or Form 8879 filed on or after October 15, 2007 (Notice 2007-79,. These alternative methods of signing authorized in Notice 2007-79 must include either a facsimile of the individual ERO's signature or of the ERO's printed name. EROs using one of these alternative means are personally responsible for affixing their signatures to returns or requests for extension. Notice 2007-79 applies only to EROs that sign Form 8453, Form 8878, or Form 8879, and does not alter the signature requirements for any other type of document currently required to be manually signed, such as elections, applications for changes in accounting method, powers of attorney, or consent forms. It also does not alter the requirement that Form 8453, Form 8878, or Form 8879 be signed by the taxpayer making these forms by handwritten signature or other authorized means (Notice 2007-79).




Cumulative Bulletin Notice 2000-19, 2000-1 CB 845 , March 13, 2000.

PURPOSE
This notice informs taxpayers that the Internal Revenue Service is temporarily waiving the signature requirement for Form SS-4, Application for Employer Identification Number, as authorized by §6061(b)(1)(A) of the Internal Revenue Code.



BACKGROUND
Section 6061(a) generally provides that any return, statement, or other document required to be made under any provision of the internal revenue laws or regulations must be signed in accordance with forms or regulations prescribed by the Secretary of the Treasury.

Section 6061(b)(1) requires the Secretary to develop procedures for accepting signatures in digital or other electronic form. Until such time as these procedures are in place, §6061(b)(1)(A) authorizes the Secretary to waive the requirement of a signature for a particular type or class of return, declaration, statement, or other document required or permitted to be made under the Code.

Section 6061(b)(3) requires that the Secretary define and implement any waiver of the signature requirements through appropriate published guidance.

Section 6109(a) provides, in part, that when required by regulations, any person required to make a return, statement, or other document must include in such return, statement, or other document such identifying number as may be prescribed for securing proper identification of such person.

Section 301.6109-1(a)(1)(ii)(C) of the Regulations on Procedure and Administration provides that any person other than an individual (such as a corporation, partnership, nonprofit association, trust, estate, or similar nonindividual person) that is required to furnish a taxpayer identifying number must use an employer identification number (EIN).

Section 301.6109-1(d)(2)(i) provides that any person required to furnish an EIN must apply for one on Form SS-4. The form, together with any supplementary statement, must be prepared and filed in accordance with the form, accompanying instructions, and relevant regulations, and must set forth fully and clearly the requested data. Form SS-4 requires the applicant to sign the form and verify by a written declaration that it is made under penalties of perjury.

REASONS FOR SIGNATURE WAIVER FOR FORM SS-4

The Service is exploring methods of filing Form SS-4 other than on paper, such as magnetic media and other electronic means. As these alternative methods of filing Form SS-4 evolve, the Service intends to provide procedures for accepting signatures in digital or other electronic form. Until such time as these procedures are in place, the Service is waiving the requirement under §6061(a) that taxpayers sign Form SS-4. This waiver applies to Forms SS-4 currently filed on paper, as well as to Forms SS-4 that eventually may be filed through electronic means. However, because this waiver is only temporary, the Service does not intend to remove the signature line from the paper version of Form SS-4.



EFFECTIVE DATE
This Notice is effective for Forms SS-4 filed on or after March 13, 2000.



DRAFTING INFORMATION
The principal author of this notice is Andrew J. Keyso of the Office of the Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this notice contact Mr. Keyso at (202) 622-4910 (not a toll-free call).