Purpose:
Form 8879 is a permission slip that allows an Electronic Return Originator (ERO) (e.g., a tax preparer) to e-file your tax return on your behalf. It replaces a handwritten signature for e-filing.
Key Points
1. How It Works
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Taxpayer Creates a 5-Digit PIN: Acts as an electronic signature.
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ERO Uses the PIN: To submit your e-filed return (e.g., Form 1040).
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Form 8879 Itself:
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Is not sent to the IRS (unless requested).
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Must be retained for 3 years (by the tax preparer).
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2. Who Signs It?
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Taxpayer: Must sign by hand or electronically (if software supports it).
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Preparer: Also signs, confirming they verified the taxpayer’s identity.
3. Retention Rules
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Keep for 3 years from the later of:
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Return due date (e.g., April 15).
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Date IRS received the return.
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Electronic Copies Allowed: No need for paper if stored digitally.
Example Scenario
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Taxpayer Action:
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You visit a tax preparer (ERO) to e-file your 2023 Form 1040.
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You sign Form 8879 (handwritten or electronic) and choose a 5-digit PIN (e.g., 12345).
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Preparer Action:
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Uses your PIN to e-file your return.
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Stores Form 8879 for 3 years (in case the IRS asks for it).
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IRS Process:
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Accepts the return only if the PIN matches.
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May later request Form 8879 for verification.
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Why It Matters
✅ Required for e-filing: No Form 8879 = No e-file submission.
✅ Fraud Prevention: Ensures only authorized preparers file your return.
✅ Audit Protection: The retained form proves you approved the filing.
Exam Tip: If a question mentions "e-file signature" or "ERO authorization," think Form 8879!
Visual Summary
┌──────────────────────────────────┐
│ **Form 8879** │
│ IRS e-file Signature Authorization │
└──────────────┬───────────────────┘
│
┌───────────▼───────────┐
│ **Taxpayer Signs** │
│ - Handwritten │
│ - Electronic (if allowed) │
└───────────┬───────────┘
│
┌───────────▼───────────┐
│ **ERO Submits Return** │
│ - Uses 5-digit PIN │
│ - Keeps form 3 years │
└───────────────────────┘