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Government Impact on Adoption and Expansion of eSignatures and eRecords Kevin HattonDirector, E-file Provider Program ManagementInternal Revenue ServiceNovember 15, 201233IRS e-signature Points of DiscussionIRS Pilot and Proposal Successes

IRS e-signature Solicitation

IRS e-signature Policy Guidance

44IRS e-signature SuccessesPresent the IRS e-signature Success ChartPilots/Proposals55e-signature Pilot and Proposal Successes Period: Fall 2009 to PresentAs industry adopts new electronic concepts, e-signature pilots offer the Return Preparer Office (RPO) the opportunity to evaluate these new methodologies to assist industry in eliminating manual processes to save time, money, and resources for the IRS and our stakeholders.E-signature proposals approved by IRS are accepted alternative signature methods.

66e-signature Pilot and Proposal Successes Period: Fall 2009 to Present Form DescriptionMethodology Status 4419 Application for Filing Information Returns Magnetically/Electronically Electronic PIN Proposal approved in September 2011, Project implementation date tentative for Nov 2012 4506-T Request for a Transcript of a Tax Return Electronic PIN Send My Transcript Proposal approved January 2012 and first phase of the project implemented August 2012 77e-signature Pilot and Proposal Successes Period: Fall 2009 to Present Form DescriptionMethodology Status 8655 Reporting Agent Authorization Click through Pilot, October 2011 to September 2012, Pilot extension approved until October 31, 2013 8655 Reporting Agent Authorization Electronic Signature Pilot, September 7, 2012 to March 7, 201488e-signature Pilot and Proposal Successes Period: Fall 2009 to Present Form DescriptionMethodology Status 8878 and 8879 IRS E-file Signature Authorizations Electronic Signature Pad Pilot, Policy Change effective November 201099IRS e-signature Policy Guidance

Over the past two to three years, IRS has accepted various e-signature pilots. Most of the pilots used alternative signature methods on IRS Forms 4506-T, 8655, and Form 8879. Through the experience, IRS looks to adopt e-signature standards and limit the intake of e-signature pilots. E-signature proposals will also be impacted favorably when the IRS adopts e-signature standards and issues IRS e-signature policy. 1010IRS e-signature SolicitationInternal Revenue Bulletin Solicitation of recommendations for acceptable e-signature standards

E-signature Revenue Procedure Consistent IRS e-signature policy guidance incorporating GPEA, the ESIGN Act, UETA Laws, etc.

IRS plans to solicit recommendations for acceptable e-signature standards through an Internal Revenue Bulletin (IRB). The IRB is scheduled to be issued by the end of the 2012 calendar year. Also, the IRS e-signature team is working closely with IRS Chief Counsel to implement an e-signature Revenue Procedure. The Revenue Procedure will provide consistent IRS e-signature policy guidance incorporating GPEA, the ESIGN ACT, UETA Laws, grandfathering in of existing approved alternative signature methods, etc. all within the Revenue Procedure.

The ESIGN Act. The federal ESIGN Act provides the legal basis for agencies of the US Federal Government to use or accept electronically signed documents in lieu of wet-signed paper documents. Under the Act, participants in a transaction may keep electronic records instead of paper records provided the electronic records meet certain accuracy and accessibility requirements set forth in ESIGN. However, governmental agencies may, subject to certain limitations (discussed later), promulgate performance standards to assure the accuracy, integrity and accessibility of records that are required to be retained. GPEA (Government Paperwork Elimination Act): GPEA requires Federal agencies, by October 21, 2003, to allow individuals or entities that deal with the agencies the option to submit information or transact with the agency electronically, when practicable, and to maintain records electronically, when practicable. The Act specifically states that electronic records and their related electronic signatures are not to be denied legal effect, validity, or enforceability merely because they are in electronic form, and encourages Federal government use of a range of electronic signature alternatives.

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