Electronic filing.

• Author: Laffie, Lesli S.

According to IRS officials, the paper signature jurat will be eliminated for electronically filed (e-filed) Federal individual income tax returns during the 2001 filing season. Taxpayers who e-file will not have to file a paper copy of Form 8453, U.S. Individual Income Tax Declaration for Electronic Filing. Instead, a self-selected, five-digit personal identification number (PIN), together with two "shared secrets" (tax liability and prior-year adjusted gross income) and the taxpayer's name and Social Security number, will constitute a valid signature.

The new electronic signature program will be available nationwide during the 2001 filing season. Approximately 6.8 million taxpayers participated in the IRS's PIN pilots during the 2000 filing season, almost a 500% increase from 1999. The IRS decided not to continue to mail postcards with PIN numbers to taxpayers, due to cost and administrative concerns. For the long term, the IRS is working to develop a digital signature.

In 2001, 23 new forms will be accepted through the IRS's e-file program; 39 additional forms will be added in 2002. New for the 2001 filing season on the electronic Form 1040 will be space for preparer notes, statements and elections, features that had been requested by many practitioners. Returns of taxpayers with foreign addresses will be accepted in 2001.

The 23 additional forms to be accepted in the Form 1040 e-file program for 2001 include:

* Form 2106-EZ--Unreimbursed Employee Business Expenses

* Form 2350--Application for Extension of Time to File U.S. Income Tax Return

* Form 2688--Application for Additional Extension of Time to...