KBA e-signature

Key tips and advice the working tax pro can use.
#1
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CALIFORNIA (CA)
Looking for the KBA compliant e-signature option. Please recommend something that is reasonably priced and need volume (at least 250). Does California require KBA compliant e-signature. Use Lacerte software.
 

#2
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The last firm I left before I went out on my own was using Right Signature. It was fairly affordably priced vs. docusign and the other name brands.
 

#3
MWEA  
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Minnesota
I use right signature. It seems like 4 in 5 typically pass the KBA test, which is a pain. I’ve often wondered if this is the same across all providers or if RS sucks worse by comparison.
 

#4
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MWEA wrote:I use right signature. It seems like 4 in 5 typically pass the KBA test, which is a pain. I’ve often wondered if this is the same across all providers or if RS sucks worse by comparison.


One thing we were given advice on is to ensure that the client's middle initial is in their name.
 

#5
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I likewise use RS and I would guess that about 6 in 7 (or 8 in 9) will work without issue.
 

#6
CO CPA  
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I use the KBA built in to Drake software.
 

#7
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There's KBA built into Drake software? I assume you mean by using Drake Portals? Because, otherwise, I am missing out on a valuable benefit.
 

#8
CathysTaxes  
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Drake requires the purchase of a device to capture the signature.
Cathy
CathysTaxes
 

#9
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Cathy, my understanding is that the device is only necessary if you are getting an electronic signature in person, much like you might sign for an in-store purchase. If a client comes to my office to sign, I get them to sign a hard copy. I do not want something as important as a signed 8879 residing solely on a computer that may get corrupted.
 

#10
CO CPA  
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CathysTaxes wrote:Drake requires the purchase of a device to capture the signature.


No they don't. You can do it all through the Drake portal.
 

#11
CO CPA  
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SumwunLost wrote:There's KBA built into Drake software? I assume you mean by using Drake Portals? Because, otherwise, I am missing out on a valuable benefit.


Yes, I meant Drake portal. I really like the e-sign option - my clients fine it easy and convenient.
 

#12
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WA State
I will be using SafeSend. Not the least expensive option, but nearly 100% of the verifications stick and there's no portal to contend with.
~Captcook
 

#13
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Maryland
I use the e-signature option in Proseries and Canopy.
 

#14
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Hawaii
Rightsignature works well. It's about $720 per year, unlimited (if you pay annually). I get about a 90% or more success rate. The ones that fail are likely failures regardless of software provider.
 

#15
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Northern MI and Coastal SC
You can use DocuSign and create templates. It is pretty efficient, IMO.

I use TaxDome. Very few failures, overall. I can count them on two hands in three tax seasons with DocuSign and then TaxDome.
 

#16
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CCH Axcess has a pretty good pass rate - except for those without much credit history (mostly the young).
 

#17
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Oh, another option (southparkcpa uses it) is Encyro. I don't know the per KBA cost but he likes it, and I think he last indicated he does around 100 tax returns in his semi-retirement mode.
 

#18
BFStax  
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CornerstoneCPA wrote:Oh, another option (southparkcpa uses it) is Encyro. I don't know the per KBA cost but he likes it, and I think he last indicated he does around 100 tax returns in his semi-retirement mode.


I got very excited about this option when I first reviewed but they are advertising KBA as a one time SMS text that the client enters. This is extremely misleading because, as I understand it, the IRS does not allow this type of verification method for forms 8879. It must involve the use of credit report data (or whatever you call it).

Encyro says on their website it meets the IRS qualifications but I doubt it.
 

#19
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BFSTax, Verifyle uses the same system and prepared an explanation as to why it is acceptable. If you're interested go to https://verifyle.com/compliance.html and scroll down to the 8879 bit to "Learn More." This will open a PDF. They seem to think it is fine. NAEA provides this as a member benefit so you'd hope they did their due diligence on this beforehand.

Whether it is compliant or not, it would be a serious pain in the proverbial to keep texting clients, especially if there is a time limit to the code.
 

#20
BFStax  
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SumwunLost wrote:BFSTax, Verifyle uses the same system and prepared an explanation as to why it is acceptable. If you're interested go to https://verifyle.com/compliance.html and scroll down to the 8879 bit to "Learn More." This will open a PDF. They seem to think it is fine. NAEA provides this as a member benefit so you'd hope they did their due diligence on this beforehand.

Whether it is compliant or not, it would be a serious pain in the proverbial to keep texting clients, especially if there is a time limit to the code.


Thank you and this is a really good explanation for why KBA can be used the way they deploy it. Doesn't necessarily mean it's correct and will hold up in court, but to me it sounds good and like they have done their due diligence.

I used DocuSign for years which uses the credit report style of KBA but due to scaling back my tax practice the DocuSign fees were too high.
 


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