The COVID-19 pandemic has created many challenges for Denver businesses and individuals. It started with forced business closures and stay at home orders and six months later has impacted virtually every aspect of life. The introduction of face masks and social distancing requirements to the popularization of remote workplaces and new reopening guidelines have all helped to make the “return to normal” possible. In fact, COVID-19 has even impacted the IRS where COVID-19 restrictions impacted return acceptance, processing, and other services. It is against this backdrop of unusual circumstances, the IRS announced in late August that they will accept e-signatures on specific forms that cannot be filed electronically. The change not only makes it easier for taxpayers to complete requisite filings but also reduces the amount of paperwork and potential exposure tax preparers and IRS employees face when reviewing returns. To help clients, prospects, and others, Hanson & Co has provided a summary of the key details below.
The recent update issued by the IRS temporarily permits an e-signature to be used when filing the following forms, including:
- Form 3115, Application for Change in Accounting Method
- Form 8832, Entity Classification Election
- Form 8802, Application for U.S. Residency Certification
- Form 1066, U.S. Income Tax Return for Real Estate Mortgage Investment Conduit
- Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies
- Form 1120-C, U.S. Income Tax Return for Cooperative Associations
- Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts
- Form 1120-L, U.S. Life Insurance Company Income Tax Return
- Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return
- Form 8453 series, Form 8878 series, and Form 8879 series regarding IRS e-file Signature Authorization Forms.
The change is effective for qualifying forms that are postmarked on or after August 28, 2020, through December 31, 2020. It is important to note the IRS does not require that a specific software be used to generate the digital signature.
It is clear that COVID-19 will continue to impact Denver businesses and individuals for months to come. However, the recent change by the IRS will make it easier to complete relevant filings. If you have questions about the information outlined above or need assistance with an accounting or tax issue, Hanson & Co can help. For additional information call us at 303-388-1010 or click here to contact us. We look forward to speaking with you.