E-signature for Form 8879 and engagement letters

The IRS FAQ says the ERO’s software dictates the e-signature method, giving examples such as a typed name or a digital signature. Whatever the method, the electronic record must be tamper-proof once it is e-signed.

Form 8879 itself says taxpayers must sign by handwritten signature or by electronic signature if supported by computer software, and that the ERO must confirm the identity of the taxpayers.

For a remote transaction, the IRS describes knowledge-based authentication questions about the taxpayer’s personal and financial history. If the taxpayer e-signs in the physical presence of the ERO, no further identity verification is needed. If identity verification fails, the ERO must get the taxpayer’s handwritten signature.

The software must record a digital image of the signed form, the date and time of the signature, the taxpayer’s IP address for a remote transaction, and the result of the identity check.

Engagement letters are not governed by the 8879 rules, so a general e-signature tool works for them. HelloBooks Practice lists engagement letters with merge fields as live and its self-hosted e-signature as in pilot; IRS 8879 remote signing with identity verification is on its roadmap, not live.