How should tax reporting forms be signed?

Most employment forms and tax forms must be signed with the traditional pen and paper, but the IRS allows alternative signatures for some such forms. Corporate officers or authorized agents have the option of signing a number of forms by facsimile (such as rubber stamp, mechanical device, or computer software program). The following forms may be signed in this manner:

1. The Form 94X series;

2. Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons;

3. Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips;

4. Form CT-1, Employer's Annual Railroad Retirement Tax Return; or

5. Any variant of these forms (such as 941-SS, Employer's Quarterly Federal Tax Return).

Liability and compliance. Officers or agents using a facsimile means of signature are personally responsible for ensuring that their facsimile signature is affixed to the returns. The person filing the form must retain a letter, signed by the officer or agent authorized to sign the return, declaring that the facsimile signature appearing on the form is the signature adopted by the officer or agent and that it was affixed to the form. The letter must list each return by name and identifying number. The letter must be kept for at least four years after the due date of the tax that the return relates to, or the date the tax is paid, whichever is later. The letter need not be sent to the IRS unless specifically requested.