What counts as an electronic signature? IRS explains
Sign here! Signing documents digitally has become mainstream in the past couple years. Even IRS has a long list of forms it’ll let people e-sign, at least temporarily.
But what’s acceptable?
After all, digital signatures can come in many formats, generated with a wide range of technologies.
5 ways to e-sign
IRS recently updated its electronic signature policy. Turns out, digital signatures will be allowed until Oct. 31, 2023.
As for acceptable e-sign methods? IRS listed five to choose from:
- You can type your name on a signature block.
- A scanned or digitized image of a handwritten signature that’s attached to an electronic record is allowed.
- You may choose to use a handwritten signature inputted via an electronic signature pad.
- A handwritten signature, mark or command could also be inputted via a display screen with a stylus device.
- Or, IRS will accept a signature created by a third-party software.
Another form added
So, what forms will IRS temporarily let you e-sign? Recently, the list has grown, with Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, added to the list.
Furthermore, other forms found on the list include:
- 637, Application for Registration (For Certain Excise Tax Activities)
- 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship
- 2678, Employer/Payer Appointment of Agent
- 3115, Application for Change in Accounting Method, and
- 8973, Certified Professional Employer Organization/Customer Reporting Agreement.
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