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On July 17, 2007, the IRS sent out the following QuickAlert: New Electronic PIN Signature Requirement Begins in 2008
"ATTN: Software Developers and Authorized IRS e-file Providers/EROs
The Internal Revenue Service will simplify the signature process for electronically filed individual income tax returns submitted by tax practitioners. The simplification eliminates the need for a paper signature document to be sent to the IRS in support of electronically filed tax returns.
Beginning with the 2008 filing season, tax practitioners can e-file individual income tax returns only if the returns are signed electronically using one of two methods: either a Self-Select Personal Identification Number (PIN) or a Practitioner PIN. A Self-select PIN allows taxpayers to electronically sign their e-filed return by selecting a five-digit PIN. A Practitioner PIN is used when a taxpayer authorizes an Electronic Return Originator (ERO) to input an electronic signature on behalf of the taxpayer. Practitioner PINs require the use of Form 8879, IRS e-file Signature Authorization, which is retained by the ERO.
Nearly 90 percent of tax professionals already use electronic signatures to sign returns. Out of some 55 million e-filed returns that have come from tax professionals this year, more than 49 million used the Self-select PIN or the Practitioner PIN. Overall, more than 77 million individual tax returns have been e-filed so far this year.
The change will simplify tracking, verification and follow-up on the paper signature documents, which were required for tax returns that did not use an electronic signature.
Tax practitioners will no longer submit a paper signature for e-filed returns
by using Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file
Return. Instead, a newly designed Form 8453 will be used to transmit supporting
paper documents that are required to be submitted to the IRS with e-filed
returns. The new Form 8453 will be released later for use during the 2008
filing season. For more information on the Self-select PIN and Practitioner
PIN methods to electronically sign e-filed returns, visit the IRS web site
at www.irs.gov and type
in keyword PIN.
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This has been an IRS e-file QuickAlert"