Form 8879 or 8453? Avoid the e-file mix-up

For individual e-filed returns, Forms 8879 and 8453 each do different jobs. Form 8879, IRS e-file Signature Authorization, documents the taxpayer’s signature authorization when the Practitioner PIN method is used or the electronic return originator (ERO) is authorized to enter or generate the taxpayer’s PIN. Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, does not replace that authorization. It transmits certain paper documents that must accompany an electronically filed individual return.

Knowing which form belongs in the workflow can prevent a return from being transmitted without proper authorization or leaving required paper support sitting in the client file.

When is Form 8879 required?

Form 8879 is required when the Practitioner PIN method is used. It’s also required when the taxpayer authorizes the ERO to enter or generate the taxpayer’s PIN.

• If the ERO is not using the Practitioner PIN method and the taxpayer personally enters the PIN, Form 8879 generally is not completed.
• If the ERO is authorized to enter or generate the taxpayer’s PIN, Form 8879 comes back into the process.

The signed form must be in the ERO’s hands before the return is transmitted or released for transmission. The taxpayer generally must review the return before signing Form 8879, which authorizes use of the taxpayer’s PIN as the electronic signature. However, a taxpayer who provides a completed paper return for electronic filing may sign Form 8879 without reviewing the ERO-generated electronic return, provided the electronic version agrees with the paper return.

Electronic signatures are permitted on Form 8879 when the ERO uses software that meets the IRS e-signature requirements. For remote electronic signatures, this includes identity verification and an audit trail that supports who signed and how the signature was completed. If the taxpayer fails the required knowledge-based authentication after three attempts, the ERO must obtain a handwritten signature.

Form 8879 generally stays with the ERO rather than going to the IRS. The ERO must retain the completed form for three years from the return due date or the IRS received date, whichever is later, and provide it if the IRS requests it.

Use Form 8453 for listed paper attachments

For an individual Form 1040-series return, Form 8453 is not another way to sign the return. It serves as a transmittal for certain paper forms and supporting documents that must accompany an electronically filed individual return.

Use it only when the e-filed return requires one of the paper forms or supporting documents listed on Form 8453. The current form includes items such as Form 2848, Form 3115, certain Form 8283 materials and Form 8332. If a document is not listed on Form 8453 and cannot be filed electronically, check the applicable filing instructions rather than assuming it can be mailed with Form 8453.

The individual Form 8453 itself is not signed. After receiving acknowledgment that the IRS accepted the electronic return, the ERO must mail Form 8453 with the required attachment within three business days.

Do not confuse the individual transmittal with Form 8453-series declaration forms used for certain non-individual returns. Those versions serve different functions and follow their own e-file procedures.

Add an e-file checkpoint before transmission

A short e-file checkpoint can keep Form 8879 and Form 8453 from becoming an after-the-fact cleanup job:

• Who is entering or generating the taxpayer’s PIN, and does that require Form 8879?
• Has the signed Form 8879 been received before the return is released for transmission?
• Does the return include a paper attachment specifically listed on Form 8453?
• Where will the authorization and related e-file records be retained if the IRS asks for them?

The distinction is simple once it is built into the workflow: Form 8879 authorizes the electronic signature. Form 8453 moves specified paper support after an individual return is e-filed.

For a broader review of ERO responsibilities, see NATP’s article, E-file compliance for tax firms starts with ERO responsibilities.