Engagement letters and 7216 consents signed, and Form 8879 left to the right tool

Which tool signs which document

Form 8879 and the identity rules

The same chapter of Publication 1345 sets out what that software has to do. Identity verification must follow NIST Special Publication 800-63-4. For a remote signing, the ERO records the taxpayer's name, Social Security number, address and date of birth, and the software verifies them through record checks, typically knowledge-based questions generated from credit records. In person, the ERO inspects a government photo ID unless there's a multi-year relationship. If the taxpayer fails the questions three times, the ERO must get a handwritten signature.

The software must also record a digital image of the signed form, the date and time, the taxpayer's IP address and username for remote signings, and the identity verification results. The IRS's FAQ puts it plainly: the software the ERO chooses dictates the e-signature method. SignMaster doesn't run knowledge-based authentication or record those identity results, so don't use it for Form 8879 or 8878. Use your tax software's e-signature, or a wet signature. Either way, keep the forms for three years from the return due date or the date the IRS received the return, whichever is later.

Section 7216 consents

Section 7216 generally bars preparers from using or disclosing return information except as the regulations allow, and for many uses, like offering a client another service, that means the client's written consent. Under 26 CFR 301.7216-3, the consent must name you and the taxpayer, state the purpose, identify each recipient of a disclosure, specify the information, and be signed and dated by the taxpayer. The IRS's Section 7216 FAQs say consents may be signed in pen and ink or electronically.

• Separate documents. One written document can't authorize both uses and disclosures. Make two templates.
• Mandatory wording. Consents from Form 1040 filers must contain the language in Rev. Proc. 2013-14. Paste it in exactly.
• A copy at signing. The client gets a copy of the executed consent, or the chance to print or save it, at the time of signing. A client-only envelope completes when they sign, and the sealed PDF is emailed to them.
• Timing. You can't ask for a consent to use or disclose information for solicitation after you've given the client the completed return to sign.

Engagement season in SignMaster

1. 1

   Set up the engagement letter

   Upload your letter as a template with labeled text boxes for the tax year, the services and the fee. Whatever goes in a text box prints in the letter. For a joint return, add each spouse as a signer.

2. 2

   Send to every client from a list

   Export your client list as a CSV and bulk send. Each row becomes its own envelope, SignMaster's word for one send, with that client's fee filled in. Solo sends up to 250 rows at once, Crew 500 and Company 1000.

3. 3

   Collect the documents with it

   Add Attachment fields to the organizer so clients upload W-2s, 1099s and brokerage statements as photos or PDFs while they sign. They land with the envelope.

4. 4

   Track who's left

   Reminders and a sign-by date chase for you, and the results CSV gives you a call list.

Protecting client data

The IRS reminds tax professionals that the FTC Safeguards Rule requires them to have a written information security plan. SignMaster doesn't make a practice compliant; list it in your plan like any other service that handles client data. Inside SignMaster, an access code keeps a sensitive envelope closed until the client enters a code you share, redaction removes Social Security numbers from a PDF before it goes out, and short CC lists keep signed documents away from people who don't need them.

Pricing for a tax office

A seasonal preparer fits Solo at $15 a month; an office with several preparers fits Crew, $49 a month for 5 people. Both send unlimited envelopes. New workspaces get 14 days of Crew free. See every plan.

What SignMaster doesn't do

• It doesn't prepare or e-file returns, and it doesn't connect to tax software.
• It doesn't verify identity with knowledge-based questions, so it isn't for Forms 8879 and 8878.
• It doesn't submit Forms 2848 or 8821 to the IRS.
• It doesn't take fees or set up refund transfers.