PIN or Personal Identification Number

For the tax year 2008 tax return or in tax filing season 2009, taxpayers can sign their efile tax return only using a Personal Identification Number(PIN). The self-select PIN is a five digit number (except all zeros) and replaces the Form 8453-OL, thus the Income Tax Declaration for an efile tax return will be eliminated. In order to enhance tax data security the efile taxpayer can select between
two "shared secrets" as authentication.

1. Authentication option one will be the previous year's adjusted gross income (AGI). For example, on the 2007 tax return the AGI is listed on Form 1040 on line 37.
2. Authentication option two will be the 2007 tax return PIN.

If a taxpayer enters both, the previous year's AGI and PIN, only one "shared secret" will have to match the IRS records.

Taxpayers that efile their taxes will be eligible to use the PIN electronic signature method for Federal Form 1040, 1040A, 1040EZ, 1040-SS(PR). The efile.com tax software program will select the Federal Tax Form for you based on the tax information you entered.

Taxpayers below the age of 16, who have never filed or efiled a tax return, are not eligible for the PIN signature.

WASHINGTON - The Internal Revenue Service will simplify the signature process for electronically filed individual income tax returns submitted by tax practitioners. The simplification eliminates the need for a paper signature document to be sent to the IRS in support of electronically filed tax returns.

Beginning with the 2008 filing season, tax practitioners can efile individual income tax returns only if the returns are signed electronically using one of two methods: either a Self-Select Personal Identification Number (PIN) or a Practitioner PIN.

A Self-Select PIN allows taxpayers to electronically sign their efiled return by selecting a five-digit PIN. A Practitioner PIN is used when a taxpayer authorizes an Electronic Return Originator (ERO) to input an electronic signature on behalf of the taxpayer. Practitioner PINs require the use of Form 8879, IRS efile Signature Authorization, which is retained by the ERO.

“Nearly 90 percent of tax professionals already use electronic signatures to sign returns,” Acting IRS Commissioner Kevin M. Brown said. “It’s the right time to take the next step toward truly paperless filing.”

Out of some 55 million efiled returns that have come from tax professionals this year, more than 49 million used the Self-Select PIN or the Practitioner PIN. Overall, more than 77 million individual tax returns have been efiled so far this year.

The change will simplify tracking, verification, and follow-up on the paper signature documents, which were required for tax returns that did not use an electronic signature.

 

Download Form 8879