E-Signature not requiring KBA

[MargieC]

E-signature through ProSeries is currently not requiring Knowledge Based Authentication.  I don't think that's right.  How do I contact ProSeries to let them know?  Is there any way other than calling the help number?

[abctax55 · Accepted solution]

They (Intuit) are aware.  They are interpreting the IRS wording as it not being necessary for any returning clients.

[MargieC]

Ok.  Thanks.  Do you know if there's any way to make E-signature default to KBA anyway?

[abctax55]

Nope, I don't use it, nor do I use PS.  But I doubt it.   

Maybe a PS user that uses E-signature will stop by.

[TaxGuyBill]

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@abctax55 wrote:

They are interpreting the IRS wording as it not being necessary for any returning clients.

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Oh that is interesting.  I vaguely remember a conversation about that, but forgot about it.  Do you happen to remember how they came to that conclusion (I haven't looked into it yet)?

On the other hand, I find it horrifying that Intuit doesn't give it as an option to force KBA, even if they feel it isn't required.

[abctax55]

Bill.... I saw it discussed on a different list-serve; I'll see if I can track it down.  As I don't use, I didn't pay close attention.

[TaxGuyBill]

I just found this.  It is a year old, but it looks like ProSeries gives the OPTION for KBA or not if the prior year was accepted.  Interesting.

https://accountants.intuit.com/support/en-us/help-article/certified-public-accountant/flexible-esign...

[TaxGuyBill]

And this from the IRS:

Is identity verification a one-time event?

No. Identity verification must be completed every time a taxpayer electronically signs Form 8878 or 8879, with two exceptions. If a taxpayer e-signs the form in the physical presence of the ERO, and the taxpayer has a multi-year business relationship with the ERO, then no further identity verification is needed. A multi-year business relationship is one in which the ERO has originated tax returns for the taxpayer for a prior tax year and has identified the taxpayer using the identity verification process.

https://www.irs.gov/e-file-providers/frequently-asked-questions-for-irs-efile-signature-authorizatio...

[abctax55]

snagged from ltug group: Hey all, in 2023 Lacerte the authentication type default for e-signatures has been changed from KBA to 'none'. In the past Lacerte made a big deal about the importance of KBA, the software didn't even let you send an e-signature request with 'none' or PIN to new clients. Now it's allowing anything, and defaulting to it without the option to set the default to KBA. I called yesterday, and their rep said it was a choice, not a mistake.  I've tried researching to see if the IRS had changed its recommendations. What I've found (see here) is, from what I understand, a pin is acceptable for the 8879 family of forms. That said, if anyone has any additional information it would be appreciated. Once again Intuit disappoints me. They changed a setting without informing its users (at least I don't remember hearing about it) and don't give their users the option to set it back by default. While it's easy to do in the aggregate, for the x number of e-signatures we send every year it becomes frustrating. It makes it easier for the user to make a mistake and send the e-signature with no security. EDIT: I spoke to another rep today who got a higher tier rep to help and they agreed it is a mistake and that they've "escalated" the issue.

I believe quite a few firms are taking the irs language used to mean if it's not the first signing by a new client then no kba is needed. There is a difference in what the irs said possibly bc they used "and" not "or" in the following, so it is debatable. Is identity verification a one-time event? No. Identity verification must be completed every time a taxpayer electronically signs Form 8878 or 8879, with two exceptions. If a taxpayer e-signs the form in the physical presence of the ERO, and the taxpayer has a multi-year business relationship with the ERO, then no further identity verification is needed

[TaxGuyBill]

Thanks for looking and finding that!

[abctax55]

YVW....

Off topic - what software do you use?

I'm looking for someone with software that prepares AND efiles F 1042.  I don't think Lacerte does.

[TaxGuyBill]

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@abctax55 wrote:

YVW....

Off topic - what software do you use?

I'm looking for someone with software that prepares AND efiles F 1042.  I don't think Lacerte does.

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Me?  Only ProSeries.  However, I think the 1042 is filed more like a W-2 or 1099.  So some of those third party service do it, although you would need to manually enter everything. 

This is one of the popular companies for 1099s, and it seems like they do a 1042.  I think many of the other companies do the -S, but this was the only one that Google showed that does the non-S (at least among the commonly used companies).

https://www.tax1099.com/efile-form-1042