What Is IRS Form 8878 and What Is It Used For?

IRS Form 8878 is a document used when a tax professional electronically files an application for an extension of time to file certain tax returns. It functions as a stand-in for a physical signature. This form is used in conjunction with 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 for U.S. Citizens and Resident Aliens Abroad.

Purpose of Form 8878

The function of Form 8878 is to provide legal authorization for an Electronic Return Originator (ERO), such as a paid tax preparer, to submit an extension request via the IRS e-file system. Since a physical signature on the extension form itself is not possible, this form serves as the taxpayer’s official consent and declaration for the electronic submission.

By signing Form 8878, the taxpayer affirms that they have reviewed the information on their extension application and declare it to be accurate. This allows the tax professional to use a Personal Identification Number (PIN) on the taxpayer’s behalf, a method known as the Practitioner PIN method. The form provides the documented consent that the IRS requires to validate an electronically filed extension prepared by a third party.

Information Required on the Form

When a taxpayer receives Form 8878 from their preparer, it will contain specific information drawn from the extension application. Part I, Tax Return Information, will show the taxpayer’s name, Social Security Number, and address. If filing a joint return, the spouse’s name and Social Security Number will also be included.

Part II, Taxpayer Declaration and Signature Authorization, contains a declaration stating that the taxpayer has examined the extension application and believes it to be true, correct, and complete. It is in this part where the taxpayer provides their handwritten or supported electronic signature and the date, officially granting the ERO permission to file the extension.

The final section, Part III, Certification and Authentication, is completed by the ERO. Here, the tax professional certifies they have received the signed authorization from the taxpayer before transmitting the extension.

The Authorization Process

The taxpayer’s responsibility is to sign and date the form in Part II. This action authorizes the ERO to enter the taxpayer’s PIN and submit the extension application. The taxpayer can choose to have the ERO generate the five-digit PIN or can select their own, as long as it is not all zeros.

Once signed, the completed Form 8878 must be returned to the tax professional. The taxpayer does not send Form 8878 to the IRS. The ERO is required to receive the signed form before they can electronically transmit the actual extension, either Form 4868 or Form 2350, to the IRS.

The tax professional must then retain the signed Form 8878 in their records for a period of three years from the return’s due date or the date the IRS received the return, whichever is later. The form is kept on file and is only provided to the IRS if specifically requested.