Using Form 8879 For Rejected Federal Return

My predecessor firm used to attach Form 8879 as taxpayer signature in instances where the Federal return had been rejected for e-file and could not be cured, resulting in the need to paper file. My new firm does not do this, requiring the taxpayer to sign and mail the paper-filed 1040 within the 10 day period. Obviously this is often a logistical nightmare among other issues.

I am trying to get them to see the light. From researching online this appears to be accepted practice, but does anyone know if there is specific guidance or instruction out there that allows for it?

I don't have anything authoritative, but I've never, ever seen the IRS (or, in my case, the Wisconsin Department of Revenue) reject a filing if a copy of an 8879 is included. I usually write "SEE FORM 8879" in the signature line.

Technically, FWIW, the signature on a Form 8879 is not a return signature, it is an authorization to sign the efiled return with a PIN.

" Obviously this is often a logistical nightmare among other issues. "

Not obvious, and not clear what the "other issues" are, especially since the whole scenario (waiting until 4/15 to efile and then getting a rejection that can't be fixed) would be pretty uncommon. Uncounted millions of paper filed returns have been successfully filed with wet ink signatures.

We’re a fairly large firm, so even if “uncommon” in percentage terms, that still leaves a pretty good number of returns to paper file after a rejection.

The logistical issues are that often in practice the rejection isn’t addressed and paper file determined until Day 8 or 9. That’s a self-inflicted wound for sure, but it’s reality. Then you’re left scrambling to assemble and mail out a return to a client, who may might even be available to receive it.

I will say it’s a bigger issue at 10/15 than 4/15 because we extend pretty much every return by default if it hasn’t been accepted yet. Attaching an 8879 is far easier, at least in situations I’ve encountered.

A good number of my 8879s are signed paperlessly, using KBA authentication. A digital image is inserted in the resulting PDF file to show the signature, it does not necessarily look anything like the wet ink signature. I wonder if the IRS would also accept that, since they don't have any of the supporting meta-data for the KBA signature? (meta data is IP address, date/time of signature, etc)

My predecessor firm used to attach Form 8879 as taxpayer signature in instances where the Federal return had been rejected for e-file and could not be cured, resulting in the need to paper file. From researching online this appears to be accepted practice, but does anyone know if there is specific guidance or instruction out there that allows for it?

I don't have anything authoritative, but I've never, ever seen the IRS (or, in my case, the Wisconsin Department of Revenue) reject a filing if a copy of an 8879 is included. I usually write "SEE FORM 8879" in the signature line.

This is one cool "trick" that I wasn't aware of, so thanks for posting this.

Can the 8879, in this case, be e-signed even though the 1040 requires a wet signature? I agree with @kycpacg; it is often a nightmare obtaining the wet signature from the client, so Having this option would be awesome.

Will the IRS accept the 8879 in lieu of a signed return for a tax year that can no longer be e-filed? And lastly, has anyone found an authoritative source for this practice?