Is KBA Required for Signing IRS Form 8879?

IRS Form 8879, known as the IRS e-file Signature Authorization, plays a foundational role in the electronic filing of tax returns. This document allows taxpayers to officially authorize a tax preparer, designated as an Electronic Return Originator (ERO), to submit their tax return to the IRS electronically. The form streamlines the e-filing process by providing a secure and verifiable means for taxpayers to grant this necessary permission.

Understanding Form 8879

Form 8879 serves as a taxpayer’s declaration, confirming they have reviewed their electronic tax return for accuracy and completeness. This form acts as the legal signature for an e-filed return, signifying the taxpayer’s consent for their ERO to transmit the return to the IRS. Without this authorization, an ERO cannot electronically submit a tax return on a taxpayer’s behalf.

The form includes information including the taxpayer’s name(s), Social Security Number(s), the specific tax year, and the type of tax return being filed (e.g., Form 1040, Form 1065, Form 1120, Form 1120S). It also contains a summary of key financial figures, allowing taxpayers to cross-verify the data before signing. This document is not submitted to the IRS by the taxpayer; instead, it is retained by the ERO.

Authorized Electronic Signature Methods for Form 8879

The IRS approves several methods for signing Form 8879. Knowledge-Based Authentication (KBA) is one method, involving identity verification questions based on a taxpayer’s personal or financial history. While KBA is often used for electronic signature solutions in remote transactions, it is not the sole method for signing Form 8879.

One common method is the Self-Select PIN Method, where taxpayers create a five-digit Personal Identification Number (PIN) as their electronic signature. This PIN is typically authenticated using the taxpayer’s prior year Adjusted Gross Income (AGI) or prior year self-select PIN. This method can be paperless if the taxpayer directly inputs their PIN into the electronic return record after review.

Another option is the Practitioner PIN Method, where an ERO generates a five-digit PIN for the taxpayer after verifying their identity. The taxpayer then authorizes the ERO to use this PIN as their electronic signature. Unlike the Self-Select PIN, this method does not require the taxpayer to provide prior year AGI or PIN for authentication.

Taxpayers may also print Form 8879, physically sign it, and then scan and return the document to their ERO. This “scanned signature” or “wet signature” method does not require KBA, as identity is verified by the physical signature. Electronic signature software that complies with IRS e-signature requirements may also be used, and these solutions often incorporate KBA as part of their identity verification, especially for remote transactions.

Completing and Submitting Form 8879

After a tax return is prepared, the taxpayer must review Form 8879 and the tax return summary for accuracy before applying their signature. This review ensures that all reported figures are correct and reflect the taxpayer’s understanding of their return. The taxpayer’s signature on Form 8879 serves as their affirmation that the information is true and complete.

Once signed, the taxpayer provides Form 8879 to their ERO. This can be done through secure channels, such as uploading to the ERO’s portal, encrypted email, or physically delivering a paper copy. The ERO must receive the signed Form 8879 before transmitting the taxpayer’s electronic tax return to the IRS.

The ERO has responsibilities upon receiving the signed form. They must retain Form 8879 for three years from the return’s due date or the IRS receipt date, whichever is later. After obtaining authorization, the ERO transmits the taxpayer’s electronic tax return to the IRS. Taxpayers should receive confirmation from their ERO that the return was transmitted and accepted.