TaxProTalk.com

They are silly because I should know them already and I wonder if I can same some time and money....



1) Is KBA required every time for every client? Or if it is a client in which we know from in-person meetings and have previously verified their identity and have done their taxes for 10 years etc, are we allowed to skip KBA?


2) Is it permissible to get an e-signature on form 8879-S for use in filing an 1120s?

I suspect the answers are

1)Yes
2)No

1. KBA is required by IRS. Doesn't matter how well you know the client.

I daresay you could skip KBA by having them print off the 8879, sign it in real ink, scan it in and send it back to you.

SumwunLost wrote:I daresay you could skip KBA by having them print off the 8879, sign it in real ink, scan it in and send it back to you.

Yes, you can. That's the route I go with clients that have problems with KBA. They print the authentication package, hand sign and date, then scan it to file and upload.

Remote esignature of the 8879 or 8878 requires KBA. Doesn't matter how well you know the person.

If they're esigning in-person, for example in your office via a signature pad, KBA is not required.

I don't require KBA for remote esignature of the business and trust authorizations. e.g. 8879-PE. I've never seen anything that suggests KBA is required for those forms.

Regarding #2, what have you seen that suggests esignature is not accepted on an 8879-S?

I've been retired so long that I had to look up KBA.

Are you sure that there is no exception for returning clients?

From IRS website:


Is identity verification a one-time event?

No. Identity verification must be completed every time a taxpayer electronically signs Form 8878 or 8879, with two exceptions. If a taxpayer e-signs the form in the physical presence of the ERO, and the taxpayer has a multi-year business relationship with the ERO, then no further identity verification is needed. A multi-year business relationship is one in which the ERO has originated tax returns for the taxpayer for a prior tax year and has identified the taxpayer using the identity verification process.


https://www.irs.gov/e-file-providers/fr ... horization



Next, the question about 8879-S....

The IRS clearly allows e-signature for forms 8878 or 8879 (and many other forms temporarily due to Covid). but no where do they indicate that 8879-S is included that I can see. One might argue that 8879-S (and 8879-PE) ARE 8879 forms, but if that was the case, why do they bother listing all of the other individually dashed forms?

ItDepends wrote:Next, the question about 8879-S....

The IRS clearly allows e-signature for forms 8878 or 8879 (and many other forms temporarily due to Covid). but no where do they indicate that 8879-S is included that I can see. One might argue that 8879-S (and 8879-PE) ARE 8879 forms, but if that was the case, why do they bother listing all of the other individually dashed forms?

This has been discussed here before. Two threads, but there's more if you use the search tool:

viewtopic.php?f=8&t=17496&p=153151&hilit=business+esignature#p153151

viewtopic.php?f=8&t=20379&p=175744&hilit=business+esignature#p175744