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IRS extends e-signature and encrypted email options

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Summary

The Internal Revenue Service has extended indefinitely the ability to use electronic or digital signatures on tax documents, and until Oct. 31, 2025 the ability to use encrypted email when communicating with IRS employees. This flexibility has been well-received by tax professionals and taxpayers alike, as it saves them time. The IRS also updated its Internal Revenue Manual and provided guidance for receipt and transmission of documents through email with encryption when working person-to-person with IRS personnel. The IRS is using funds from last year’s Inflation Reduction Act to modernize its technology systems.

Q&As

What options did the IRS extend indefinitely?
The IRS extended the ability to use electronic or digital signatures for tax documents, and the ability to use encrypted email when communicating with IRS employees.

What flexibility did the IRS offer before the pandemic?
The option to use electronic or digital signatures on certain paper forms that required a handwritten signature.

How has the use of digital signatures been received?
The flexibility of using digital signatures has been well received by tax pros and taxpayers and saved them time.

What are the IRS's long-term plans for secure electronic communication channels with taxpayers?
The IRS plans to fully implement long-term solutions for secure electronic communication channels with taxpayers as alternatives to encrypted email.

What are some of the technologies the IRS is using to modernize its systems?
The IRS is using scanners, optical character recognition, a pilot test of a free direct e-file program and more to modernize its systems.

AI Comments

👍 The IRS is taking steps to modernize its technology systems, making it easier for people to communicate with the IRS and file taxes.

👎 The IRS has extended the ability to use electronic and digital signatures and encrypted emails indefinitely, which could leave taxpayers vulnerable to identity theft and fraud.

AI Discussion

Me: It's about the IRS extending their two pandemic-related options for taxpayers and tax professionals, the ability to use electronic or digital signatures for tax documents, and the ability to use encrypted email when communicating with IRS employees, until 2025.

Friend: That's great news! It will make it much easier for taxpayers and tax professionals to communicate with the IRS.

Me: Absolutely. It will also save them time, as they won't have to wait for a handwritten signature, or send physical mail. It's also encouraging to see the IRS modernizing its technology systems with scanners, optical character recognition, and a free direct e-file program.

Action items

Become familiar with the IRS's guidance on digital signatures and encrypted email options.
Utilize the IRS's digital signature and encrypted email options when communicating with IRS personnel.
Research the IRS's other modernization efforts, such as scanners, optical character recognition, and the free direct e-file program.

Technical terms

IRS: Internal Revenue Service, the U.S. government agency responsible for collecting taxes.
E-Signature: An electronic signature, which is a digital representation of a person's signature used to authenticate documents.
Encrypted Email: An email that is encrypted, or scrambled, so that only the sender and recipient can read the contents.
IRM: Internal Revenue Manual, a set of guidelines and procedures used by the IRS.
OCR: Optical Character Recognition, a technology used to convert scanned images of text into digital text.
Direct E-File: A program that allows taxpayers to file their taxes electronically without the need for a third-party service.