What is an electronic signature on a tax form?

What it is

An electronic signature can be a typed name, a drawn signature, a click on "I agree", or a cryptographic signature, as long as it is attached to the document, shows the signer meant to sign, and the record is kept. Federal law gives such signatures the same standing as ink for most private documents, including engagement letters and consents.

The IRS sets its own rules for its forms. Form 8879 may be e-signed if the ERO follows Publication 1345, which includes identity verification for remote signers. The IRS also accepts electronic signatures on a published list of other forms, and online submissions of Forms 2848 and 8821 may be e-signed.

Why it matters for a tax firm

E-signature is what lets a client finish from their phone. The firm's job is to make sure the tool meets the IRS rule for the particular form and that the signed record and audit trail are stored with the client file.

How XyloDocs handles it

XyloDocs collects the documents and reminders around signing; the signature itself happens in the firm's e-signature or tax software, which is where the IRS-required identity check and audit trail live.