What is Form 8879 – IRS e-file Signature Authorization?
Okay, let’s talk about Form 8879. You might have heard of it if you’ve ever had someone else prepare and e-file your taxes. It’s a pretty important piece of the tax puzzle if you’re not submitting your return yourself using tax software or the IRS Free File program.
What’s the Big Deal About E-filing Anyway?
Before we dive into Form 8879, let’s quickly touch on e-filing. E-filing, or electronically filing, is when you send your tax return to the IRS over the internet instead of mailing in paper forms. It’s faster, safer, and more efficient for both you and the IRS. The IRS actually prefers e-filing for this reason! It allows them to process returns quicker, and often helps you get your refund faster too, if you are due one.
How E-Filing with a Tax Preparer Works
When you hire a tax professional – like an accountant, CPA, or enrolled agent – to prepare your tax return, they can file it electronically for you. Now, think about this: if they are submitting the return, how does the IRS know that you agree with what they’ve prepared? This is where Form 8879 comes in!
The Purpose of Form 8879
The IRS needs your authorization to treat the e-filed return as if it were filed directly by you. This is what Form 8879 provides. It is the form you must sign to legally give your tax preparer the authority to file on your behalf. Think of it like a power of attorney, but specifically for filing your taxes electronically. It acts like your digital signature. You can’t just say “go ahead” and expect the IRS to accept it. They need official documentation, which is where the Form 8879 comes into play.
How Form 8879 Works – The Steps
- Tax Return Preparation: First, your tax preparer will prepare your tax return using the information you’ve provided. This could include income, deductions, credits, and any other relevant financial details.
- Reviewing the Return: Once the return is ready, it’s really important to look it over carefully. Make sure that everything appears to be accurate. Ask any questions you may have about any areas that you don’t understand.
- Completing Form 8879: After you are happy with the return, your preparer will fill out Form 8879. This form includes key information like your name, address, social security number, and the tax year for which the return is being filed. It also contains the adjusted gross income (AGI) from your previous year’s return and the total refund or amount due. This data is used to verify that the correct taxpayer has authorized the e-file.
- Your Signature: Now, here’s the critical part. You have to sign the Form 8879. This signature, either physical or electronic, is your authorization for your tax professional to submit the return electronically. You are also affirming that you have reviewed the tax return, and that it is true, correct, and complete to the best of your knowledge.
- Electronic Submission: Once signed, your tax preparer can now e-file your return with the IRS. They will include the information from the Form 8879 as part of the electronic submission.
- Form Retention: The tax preparer keeps a copy of the signed Form 8879. You should also keep a copy for your records, just in case! While you don’t submit it directly to the IRS, you should hold onto it.
Who Needs to Use Form 8879?
Form 8879 is primarily used by taxpayers who:
- Hire a Tax Preparer: If you use a tax professional to file your taxes electronically, you will likely need this form.
- File Jointly: Both spouses must sign the Form 8879 if filing jointly.
- Don’t E-file Directly: If you’re not using tax software or the IRS Free File program to e-file yourself, you’ll likely need this form when someone else files on your behalf.
What Does Form 8879 Include?
The Form 8879 includes:
- Taxpayer Information: Your name, address, Social Security number or ITIN (Individual Taxpayer Identification Number).
- Preparer Information: The name, address, and identifying number of your tax preparer.
- Tax Year: The tax year the return covers.
- Adjusted Gross Income (AGI): Your AGI from your previous year’s tax return, used for verification.
- Total Refund/Amount Due: The total refund amount or the balance you owe.
- Signature: Your signature authorizing the preparer to e-file.
- Consent to Disclosure: You may also be asked to authorize your preparer to discuss your return with the IRS.
Important Things to Note About Form 8879
- No IRS Submission: You don’t send the completed form directly to the IRS. Instead, your tax preparer keeps it on file.
- Must Be Signed: Without your signature, your preparer cannot legally e-file your return.
- Review Carefully: Make sure the return is correct before signing Form 8879. You are ultimately responsible for the accuracy of your tax return.
- Electronic Signature Options: You may be able to sign the form electronically (through a secure portal), rather than physically. Discuss options with your tax preparer.
- Timely Signing: Sign Form 8879 before the tax filing deadline to ensure your return is filed on time.
Related Concepts and Terms
- E-file: Electronically filing your tax return through the internet, rather than submitting a paper copy.
- Tax Preparer: A professional who prepares tax returns for individuals or businesses.
- Adjusted Gross Income (AGI): Your gross income minus specific deductions, used as a reference point on tax forms.
- Power of Attorney: Legal document that gives someone the authority to act on your behalf. In this context, Form 8879 is a limited power of attorney specifically for e-filing your taxes.
Common Misconceptions
- Form 8879 is sent to the IRS: No, you keep it with your records. The tax preparer maintains their copy.
- Signing Form 8879 makes the tax preparer responsible for accuracy: No, as the taxpayer, you are ultimately responsible for the accuracy of your return. You should review it closely before authorizing it.
- Form 8879 means my tax preparer can access all my IRS information: No. This form only allows your preparer to file the tax return.
Tips For Using Form 8879
- Always Review Your Return: Before signing Form 8879, meticulously review your tax return. Make sure the income, deductions, credits, and other information are accurate.
- Ask Questions: If something on your return or Form 8879 confuses you, ask your tax preparer! It is their responsibility to make you feel comfortable and confident with the process.
- Keep a Copy: Always keep a copy of the signed Form 8879 for your own records.
- Choose a Reputable Preparer: Select a professional who is ethical and experienced. This can help you feel more confident in the filing process.
Why This Matters
Form 8879 is more than just a signature on a piece of paper or a digital form. It’s your permission for the IRS to accept your tax return when filed by someone else. Understanding its purpose and importance can help you ensure that your taxes are filed accurately and on time.
So, next time you see Form 8879, you’ll know exactly what it’s for. It’s there to protect you, the tax preparer, and the IRS, ensuring the tax system works smoothly, and giving you an easier option for filing your taxes.