What Is Form 8878 and How Is It Used?

Form 8878, IRS e-file Signature Authorization for Form 4868 or Form 2350, serves a specific function for taxpayers who need more time to file their federal income taxes. It is not the extension application itself, but rather the document that grants a tax professional permission to electronically file an extension request on a taxpayer’s behalf. This authorization provides formal consent for an e-filed submission, ensuring the IRS has a record of the taxpayer’s approval for the action taken by their preparer.

Purpose and Use of Form 8878

This form becomes necessary when a taxpayer hires a third-party professional, known as an Electronic Return Originator (ERO), to file for a tax extension electronically. An ERO is an IRS-authorized provider who originates the electronic submission of tax returns and related forms. Form 8878 is used to provide the signature authorization for the electronic filing of either Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, or Form 2350, Application for Extension of Time To File U.S. Income Tax Return.

The form is required when using the Practitioner PIN method, where the tax professional enters a Personal Identification Number on behalf of the taxpayer. Form 4868 is the standard application for an automatic six-month extension for most individual filers, while Form 2350 is for U.S. citizens and resident aliens abroad.

Information Required to Complete the Form

A taxpayer must provide specific identifying details in Part I of Form 8878. This includes the full name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for the primary taxpayer and their spouse, if filing a joint extension. The form also requires the current home address and the specific tax year for which the extension is being requested.

Part II of the form is the Taxpayer Declaration and Signature Authorization, where the taxpayer affirms, under penalty of perjury, that they have reviewed the information on their extension application and that it is accurate. This part also authorizes the ERO to enter the taxpayer’s PIN on the extension application and requires the taxpayer to indicate or verify the five-digit PIN they will use, which cannot be all zeros.

The Signature and Retention Process

The taxpayer must sign and date Form 8878 and return it to their ERO. The signature can be handwritten or, if the ERO’s software supports it, an electronic signature is permissible. The form can be returned to the professional via hand delivery, mail, fax, or a secure internet portal. The ERO cannot transmit the electronic extension application to the IRS until they have received the signed Form 8878 from the taxpayer.

Form 8878 itself is not sent to the IRS. The ERO who files the extension must retain the completed form. This document must be kept for three years from the return due date or the date the IRS received the extension, whichever is later.