The IRS has issued new rules allowing corporate officers or duly authorized agents to sign employment tax forms by facsimile, including alternative signature methods such as computer software programs or mechanical devices.   The rules will reduce burden on business taxpayers by simplifying employment tax filing and lowering the number of returns rejected by the IRS because of signature issues.

The new procedure applies to the following forms:

• Any form in the 940 series, including
  
   
  • Form 940 Employer’s Annual Federal Unemployment Tax Return (FUTA)
    
     
  • Form 941 Employer’s Quarterly Federal Tax Return
    
     
  • Form 943 Employers Annual Federal Tax Return for Agricultural Employees
    
     
  • Form 945 Annual Return of Withholding Federal Income Tax
    
     
• Form 1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
  
   
• Form 8027 Employer’s Annual Information Return of Tip Income and Allocated Tips
  
   
• Form CT-1 Employer’s Annual Railroad Retirement Tax Return
  
   
• Any variant of these forms, such as
  
   
  • Form 941c Statement to Correct Information
    
     
  • Form 941-S, Employer’s Quarterly Federal Tax Return.
    
     

Officers or agents using a facsimile means of signature are personally responsible for ensuring that their facsimile signature is affixed to returns.   The person filing the form must retain a letter, signed by the officer or agent authorized to sign the return, declaring under penalties of perjury that the facsimile signature appearing on the form is the signature adopted by the officer or agent and that the facsimile signature was affixed to the form by the officer or agent or at his or her direction.

The letter must list each return by name and identifying number.   The letter should not be sent to the IRS unless specifically requested by the Service.   The letter must be retained for at least four years after the due date of such tax as the return relates, or the date such tax is paid, whichever is later.

The IRS issued the revenue procedure in response to an Industry Issue Resolution submission presented to the IRS last year by the National Payroll Consortium.   The procedure is effective for any of the designated forms filed with the IRS on or after July 1, 2005.