Finally, You Can Be Paperless… Well Almost

Have you resisted electronic filing because of having to mail Forms 8453 (the signature pages)? Well, now you can STOP handling that paper. Last year over 42 million returns were filed with an electronic signature. That was an increase of almost ten million tax returns in a single year. Over thirty million of those returns were filed by tax preparers.

There are actually two methods available to electronically sign a return, the “Self-Select PIN” and the “Practitioner PIN.” The former requires some shared secrets (like birth date and prior year AGI). If the shared secret is incorrect, the return may be rejected by the IRS. For that reason, we always recommend that preparers use the “Practitioner PIN,” which never rejects.

When you and your client sign the return electronically, you do not have to mail Form 8453. So you can take one step off your checklist. Drake Software allows both you and the taxpayer to sign the return on the PIN screen. Check it out. It can really save you some time.

In addition, the IRS now allows you to supply your clients with an electronic copy of their tax returns instead of a paper copy. So you can review the return on the computer screen, sign it electronically, and email them a PDF of their return. (Drake Software provides the tools so that you can create a PDF file of their return.)
Bingo. Take another item off your checklist.

The only paper you have to print is a PIN signature page to keep in your office. This document associates a physical signature with the electronic signature. With this process, you can reduce a lot of paper in your office this season. Use the PIN and PDF (and save a tree while you’re at it).

From January 2005