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Work with uploaded documents in TaxCaddy

E-file authorization requirements for IRS

TaxCaddy offers a way to officially sign forms electronically according to IRS compliance standards. When you request this type of signature on a form, TaxCaddy stamps each Knowledge-Based Authenticated (KBA) document with all information deemed necessary by the IRS.
The signed PDF is securely retained in our database and the content is not modifiable within our system (tamper-proof). The transaction ID can be requested at any time for full details surrounding the signature audit logs.
We authenticate your clients by utilizing Dynamic KBA “out of wallet” questions that are not pre-defined and are generated according to data located for the customer at the time of signing.
These questions are generated based on information from proprietary data sources that are then presented to the client during verification. These are time-based questions and are given to the taxpayer in a random order to prevent any fraudulent behavior.
The IRS requires e-signed records to be tamper-proof once they’ve been signed and reviewed. To ensure a document is legally binding, SurePrep will secure the document in read-only mode. This is a cautionary measure to ensure that digitally signed/reviewed documents can't be tampered with or additional pages are not attached to the signed/reviewed document later. These signed/reviewed documents can still be viewed in read-only mode.

What the IRS requires for e-signed documents

As stated on page 20 of IRS Publication 1345 Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns, a digital signature that records the following information meets the IRS compliance requirements for electronic signatures:
Required by IRS
Included in TaxCaddy Stamp
Digital image of the signed form
Yes
Date and time of the signature
Yes
Taxpayer’s computer IP address
Yes
Taxpayer’s sign in identification
Yes
Identity verification
Yes
The method used to sign the record, (for example, typed name); or a system log; or other audit trail that reflects the completion of the electronic signature process by the signer.
Yes

TaxCaddy's stamp information

When a document is electronically signed through TaxCaddy, we provide a copy of the document with a stamp indicating:
  • Name of signer
  • Signer's user sign in (email)
  • Date and time of signing
  • IP address of the computer's location that was used to sign
  • Verification of the signer's identity
  • Transaction ID

This article applies to:

  • Product: SurePrep
  • Sub Product: TaxCaddy
  • Subject: Documents
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