What Is Form 8453-FE and When Do You Need to Use It?

Taxpayers who file electronically sometimes need to provide additional documentation that cannot be submitted through standard e-filing. The IRS uses Form 8453-FE to collect these required documents separately while still allowing the main return to be filed online.

Understanding when and how to use this form ensures compliance with tax regulations and prevents processing delays.

Situations Requiring the Form

Some tax filings require supporting documents that cannot be transmitted electronically. When a return includes elections, disclosures, or substantiating records that the IRS mandates in paper form, Form 8453-FE serves as the bridge for submission.

For instance, claiming certain deductions or credits may require additional verification. A business claiming the Section 179 deduction for asset depreciation may need to provide purchase agreements or invoices. Likewise, taxpayers involved in a like-kind exchange under Section 1031 must submit documents detailing the exchange agreement and property values.

Another situation involves elections requiring a signed statement. Partnerships making a Section 754 election to adjust the basis of partnership property must submit a written declaration. Since this statement cannot be e-filed, Form 8453-FE ensures the IRS receives it without disrupting the electronic submission of the main return.

Documents to Attach

When submitting Form 8453-FE, taxpayers must include specific documents verifying deductions, credits, elections, or disclosures that cannot be transmitted electronically. Ensuring the correct documents are included helps prevent delays.

Income Records

Certain tax filings require supporting income documentation. For example, if a taxpayer reports income from selling a business, they may need to attach Form 8594 (Asset Acquisition Statement) to show how the purchase price was allocated among asset classes. This ensures both the buyer and seller report the transaction consistently.

Taxpayers with foreign income may need additional records. A business claiming a foreign tax credit must provide Form 1116 (Foreign Tax Credit) along with proof of taxes paid to another country. These documents help verify that the credit is calculated correctly.

Statements or Schedules

Some deductions and credits require additional schedules or statements. Taxpayers claiming the Research & Development (R&D) Tax Credit must attach Form 6765 (Credit for Increasing Research Activities) along with documentation detailing qualified research expenses.

Similarly, taxpayers reporting installment sales must file Form 6252 (Installment Sale Income) to report income received over multiple years. The IRS may require supporting documentation, such as a copy of the sales contract, which must be attached to Form 8453-FE.

Authorizations

Certain tax matters require signed authorizations. If a business grants a third party the authority to discuss tax matters with the IRS, they must attach Form 2848 (Power of Attorney and Declaration of Representative). This allows an attorney, CPA, or enrolled agent to represent the taxpayer.

Another situation requiring an authorization is when a taxpayer makes an election that requires a signed statement. Corporations making a Section 338(h)(10) election to treat a stock purchase as an asset acquisition must submit a written agreement signed by both the buyer and seller. Since this election affects tax treatment, the IRS requires a formal statement attached to Form 8453-FE.

E-Signature Steps

Electronically signing Form 8453-FE allows taxpayers to validate their submission without mailing a physical signature. Before initiating the e-signature, taxpayers must confirm that their tax software or online filing service supports this function.

To complete the process, the taxpayer verifies their identity using personal information and authentication methods. This may involve entering their prior-year Adjusted Gross Income (AGI) or a unique PIN assigned during the electronic filing process. Some systems require multi-factor authentication, such as a verification code sent via email or text message, to prevent unauthorized filings.

Once verified, the taxpayer or their authorized representative electronically signs the form within the tax software. Some systems require a direct digital signature, while others use an IRS-approved declaration statement confirming the taxpayer’s intent to sign electronically. After signing, the software generates a confirmation receipt, which should be saved for recordkeeping.

How to Submit

Once Form 8453-FE is completed and signed, it must be sent to the IRS separately by mail. The IRS provides designated mailing addresses based on the taxpayer’s location, which should be verified through the most recent IRS instructions before sending.

To avoid delays, taxpayers should ensure all attached documents are legible. Photocopies should be clear, and any handwritten portions must be readable. If supporting records include multiple pages, they should be arranged logically, such as in chronological order for transaction-related documents or grouped by type for multiple statements.

Recordkeeping Requirements

Maintaining proper records related to Form 8453-FE is essential for compliance. Since the form transmits supplemental tax documents, taxpayers should retain copies of everything submitted. The IRS may request additional details or conduct an audit, and having well-organized records can streamline responses.

Taxpayers should keep a copy of the signed Form 8453-FE along with all attached documents for at least three years from the date the return was filed. However, if the tax return includes items subject to longer review periods—such as claims for refund or deductions related to depreciable assets—records should be kept for as long as those items remain relevant. For example, if a business submits documentation supporting a Section 179 deduction, maintaining those records for the entire depreciation period plus an additional three years is advisable. Digital storage solutions, such as encrypted cloud services or external hard drives, can help ensure records remain accessible and secure.