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CPE Webcast Federal Policy For E‐Signatures: Forms 8879, 2848, 4506‐T Engagement Letters & Rep Letters Presented by: Sponsored by:
CPE Webcast
Federal Policy For E‐Signatures: Forms 8879, 2848, 4506‐T
Engagement Letters & Rep Letters
Presented by:
Sponsored by:
Administrative Items
90 Minutes (Education, Demo, Q&A)
Participants are muted. Please ask questions through the GoToWebinar Control Panel
10% Discount to all attendees
Eligible to Receive 1.5 CPE Credits Register at www.cpaacademy.org Logged in for 75 minutes Answer 5 of 6 polling questions CPE Certificate will be issued in 2 – 3 business days Check spam & junk, then login to your account iPad viewers beware
cPaperless, LLC
Paperless tools for the tax & accounting industry
Products
Adobe Acrobat Plug‐In
Next Generation Client Portal & File Sharing
E‐Signatures for Accountants (First to Market)
2,500+ Customers and 20,000+ Accountants
Steve DusablonPresident & CEO(800) 716‐2558 x [email protected]
Webcast Agenda
Technology Options for Digital & Electronic Signatures
ESIGN Act of 2000
Federal Policies for E‐Signatures
CPA SafeSign Demonstration
Q&A
Technology Options
1. Electronic Signature Pads
2. Digital Signatures
3. Electronic Signatures (E‐Signatures)
Electronic Signature Pads
Hardware Based• Affordable ‐ $50 ‐ $600 • Easy to use – Sign with a stylus pen • Acceptable by the IRS on Form 8879
• Taxpayer must sign in your office with ERO present
Bottom Line: Limited Use • Signor must be present in your office • Documents cannot be signed remotely
Digital Signatures
Software Based (PC) Identity verification required by a Certification Authority (CA)
Verisign, Entrust, ARX, etc. Certificate installed on each users computer / PC
Bottom Line: NOT Practical for Accounting Firms Acceptable on most IRS forms (Not 2848 or 3115) Requires certificate for all partners, staff and client Expensive and cumbersome to use
E-Signatures
Software Based (Internet) • ESIGN Act – October 2000 • Slow Adoption, rapid acceleration • Sign any document through the Internet • Vendors = CPA SafeSign, Adobe EchoSign, DocuSign, Right Signatures
Bottom Line: Very Effective in Tax & Accounting• No prior verification process required • Only requires internet connection & email access • Taxpayers can use with any PC, tablet or smart phone • Affordable and easy to use
Polling Question
Polling Question #1
Most Applicable to Tax & Accounting
E‐Signatures• Affordable • Easy to use • Only requires Email and Internet access • Sign from any smart phone, tablet or PC• Both clients and staff can sign anywhere, anytime…
At Work At Home On‐The‐Go
E‐Signatures Further Defined
ESIGN Act of 2000
Background
Electronic Signatures in Global and National Commerce Act• Passed by Congress in October 2000 • Addresses the validity and legal effect of E‐Signatures and electronic contracts
in interstate & foreign commerce
Intent • Make E‐Signatures legally equivalent to written signatures • A contract or signature “may not be denied legal effect, validity, or
enforceability solely because it is in electronic form”
Result • E‐Signatures are just as good as paper equivalents
ESIGN Act of 2000
Provisions for Compliance
1. Protect the consumer with appropriate notifications and disclosures
2. Ensure technological neutrality and universal access
3. Ensure authentication and privacy
4. Create legal certainty and protection to prevent fraud
5. Allow easy document access and record retention
ESIGN Act of 2000
Exceptions to the E‐Sign Act
1. Wills, codicils, and trusts2. Adoption paperwork3. Divorce decrees4. Certain areas of the Uniform Commercial Code5. Court orders and notices6. Official court documents, including briefs and pleadings7. Notices of the termination of utility services8. Notices of default, foreclosure, repossession, or eviction9. The cancellation of insurance benefits10. Product recalls or notices of material failures11. Documentation accompanying the transportation of
hazardous materials
E-Signatures for business are deemed the same as written signatures
Worldwide Acceptance of E-Signatures
Used Everyday in Most Industries
Broad-based products don’t meet the needs of the tax & accounting industry
Investment costs were perceived to be too high
Fear that the technology will be too complicated for staff & clients
CPA SafeSign eliminates these concerns
Slow Adoption in Accounting
Polling Question
Polling Question #2
Federal Policies for E‐Signatures
Federal Policy - Commerce
Courts• Legally binding • Upheld in all areas other than the “Exceptions” previously mentioned
Insurance Companies • Legal issue not policy issue • Engagement Letters, Management Representation Letters, Audit
Representation Letters
Gartner Research • Published report Nov 2007 titled: “Findings: The Legal Precedent for E‐
Signatures is a Non‐Issue”
Federal Policy - IRS
IRS • Above the law mentality • Lacks consistency • Concerned about fraud
IMPORTANT NOTE: cPaperless is not making any legal representation as to the accuracy of the below information. Please obtain your own legal opinion from counsel.
Signature Pad Digital Signature E‐Signature
Form 4506‐T Yes Yes Yes
Form 2848 No No No
Form 8879 Yes No No
Form 1040 Yes Yes No
§ 7216 Consent Yes Yes Yes
Risks of Using on Form 8879 IRS’s Position is the signature must be hand written, with the
Electronic Signature Pad exception
Form 8879 Instructions • Pub 1345 states a hand written signature is required
“This does not alter the requirement that taxpayers must sign Form 8879 and Form 8878 by handwritten signature.”
Why Firms Are Doing It • ESIGN Act of 2000 makes it a valid signature • IRS approved for Form 4506‐T and §7216 consent starting January 2013 • Two large tax vendors in pilot program with the IRS • IRS solicited practitioner feedback 1/23/13 • Form is rarely, if ever, submitted to the IRS. Retained for 3 years • Benefit outweighs the risk. Something is better than nothing
Polling Question # 3
§ 7216 Consent Engagement Letters Management Rep Letters Audit Rep Letters A/R and A/P Confirmations Client Consent Forms New Client Acceptance Conflict of Interest Payroll Processing W-9’s Form 4506-T Credit Card Authorization
Annual Independence Survey IT Policy Partnership Agreements Internal Routing Sheets Human Resource Related Doc’s
• Offers of Employment • W-4 & I-9 • Employee Handbooks • Medical, Dental & Insurance• 401k• Parking
Client Documents Internal Documents
Tax and Accounting Opportunities
CPA SafeSign
First E‐Signature application for the tax and accounting industry
Adobe EchoSign Reseller • Make EchoSign tax and accounting specific and friendly
Outlook Plug‐in: Do all your work right from with Outlook • Outlook 2007 or 2010
MS Word Plug‐in: Mail merge and batch processing for Engagement Letters and Consent Forms
No monthly fees!
CPA SafeSign vs. Broad BasedFeature Description
Web Based AccountSend & manage documents for E‐Signature
Accounting SpecificRetention Policies based on Document TypeCustomizable Accounting Meta data • Engagement Type (1040)• Document Type (8879, Engagement Letter) • Tax Year • Partner
Outlook Plug‐InSend documents from Outlook Manage Document Library Firm wide and real time reporting & tracking • Search and filtering • View status and history • Send reminders • Download signed documents
Batch ProcessingMS Word Plug‐in Mail Merge & Batch Upload
PRODUCT DEMONSTRATION
Q&A
System Requirements
Staff • Microsoft Outlook 2007, 2010 or 2013 • Internet Connection • Adobe EchoSign Pro account (Free)
Clients • Internet Connection • Email Access • Any Browser
System Requirements
What do we do next?
FREE 30 Day Trials
Available to all members of your firm!
Contact Us:
Web: www.cPaperless.com
Email: [email protected]
Phone: (800) 716-2558 x 100
Next Steps
