CCH esign. ProSystem fx Tax

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1 ProSystem fx Tax CCH esign Introduction allows you to send documents to your clients, employees, and other third parties to securely obtain their electronic signatures. We teamed up with AssureSign to provide you with an esign solution, compliant with the ESIGN Act and the guidelines provided by the Internal Revenue Service (IRS). On June 30, 2000, Congress enacted the Electronic Signatures in Global and National Commerce Act. Although the ESIGN Act of 2000 permitted electronic signatures on most documents, the IRS continued to require a physical signature on Form 8879 until recently. On March 11, 2014, the IRS updated Publication 1345 ( to allow electronic signatures on Forms 8878 and 8879 as long as the taxpayer s identity is verified either in person or using knowledge based authentication. CCH esign provides the required Knowledge Based Authentication (KBA) to allow e-signatures on these forms. Currently, the IRS allows e-signatures without identify verification (i.e., without KBA) for: Section 7216 Consent Form 4506-T, Request for Transcript of Tax Return Forms W4 and W9 Other examples where you can use e-signatures include: Engagement letters Representation letters Confirmations Internal human resources documents The flow for CCH esign begins with the document author (preparer). After the author sets up the document in AssureSign, the client receives an alerting them to sign the document. If the signature requires verification, AssureSign offers a KBA procedure to verify the identity of the signer prior to signature. The author receives a notification after the document is signed. In the case of Form 8879, CCH esign is integrated with ProSystem fx Tax s electronic filing (ELF) system to streamline the process. Page 1

2 CCH esign Setup Licensing ProSystem fx Tax CCH esign is available now for ProSystem fx Tax, Global fx, and CCH Axcess Tax. You must obtain a separate license to use CCH esign, but that license is FREE. Call , Option 1, Option 1 to request a license and update to your permission key. Transaction fees will be billed monthly based on usage. Form 8879 esign (single or joint), with KBA, is $5 per return. esign for other purposes (without KBA) is $1 per document. KBA for other purposes is $4 per document. Steps to Install Your Updated Permission Key: 1. Insert the most recent ProSystem fx Tax installation DVD. 2. If the DVD does not auto-run, click Start > Run, then type?:\setup.exe (where? is your DVD drive). 3. If you receive a message about installing an older version of ProSystem fx Tax than what you currently have installed, click Yes to continue. 4. Select Only Update Licensing From New Permission Key. 5. When the update completes, click OK. Office Manager Configuration After installing your updated permission key, complete the configuration in Office Manager as follows. Steps to Setup your CCH esign Account: 1. In Office Manager, select Configure Applications, click esign and then click Configure. 2. In the esign Setup dialog, enter the name and address of the administrator for your CCH esign account. 3. Click Setup. Page 2

3 ProSystem fx Tax CCH esign Accessing your AssureSign Account and Setting Up Users The CCH esign administrator will receive an with a temporary password and URL to access the AssureSign account. After the CCH esign administrator logs into the AssureSign account, he or she can start sending documents for esign. Your CCH esign administrator can also set up other staff members to access the AssureSign account. Adding Users Steps to Add a User in AssureSign 1. Open AssureSign and click the Administration tab. 2. Click Users on the navigation pane and click New. 3. The name, and role fields are required. 4. Click Save. Selecting a Role Administrator Allows complete access to all functions and documents. Power User Allows access to all documents but does not allow access to administration functions. Limited User Limits the access to documents created by user. Page 3

4 CCH esign For Form 8879 ProSystem fx Tax Set up tax preparers as users in the AssureSign account. Use the same address used for the preparer in ProSystem fx Tax when you set up the user for your AssureSign account. If you use a centralized address as the tax preparer address, use this address to establish a user in your AssureSign account. If you use multiple tax preparers each with a separate , you need to set up each of these tax preparers as a user in your AssureSign account. When uploading the return for esign, ProSystem fx Tax picks the tax preparer address in this order: 1. The address specified in Office Manager > Configure Staff > Setup > Tax preparer > address for the tax preparer code specified in the return at General > Return Options > Preparer Information Overrides Office Manager > Individual preparer code (Interview Form 3). 2. Tax preparer address entered in the return at General > Return Options > Preparer Information Overrides Office Manager > Preparer address (Interview Form 3). 3. Tax preparer address entered in the return at General > Electronic Filing > Electronic Return Originator > Overrides > Preparer address (Interview Form 3). 4. The address provided for the ERO in Office Manager > Configure Office Group > Setup > Electronic Filing Options > ERO > Preparer address. If a user with the tax preparer is not setup in your AssureSign account, the upload will not complete and an error message displays. If you do not want tax preparers to have access to other tax preparers returns, you can set up the tax preparer as a limited user or modify the Document and Reporting permissions to prevent access to documents created by other users. Sending Other Documents for e-signature Steps for Sending Form 8879 for esign 1. In Office Manager, go to Configure Applications > Tax Preparation (for the appropriate office group) > Electronic Filing Options > Individual tab and select Electronically sign Page 4

5 ProSystem fx Tax CCH esign 2. In the tax return, enter: a. Yes at General > Electronic Filing > General > Electronically sign 8879 (Int. Form EF-1 Box 58). b. Taxpayer and spouse addresses at General > Basic Data (Int. Form 2 Boxes 98 and 99). For married filing joint returns, you must enter a separate address for both taxpayer and spouse. Each receives a separate at their respective address to electronically sign Form Calculate the return, clear any open electronic filing diagnostics, and check for any esign cautionary and information diagnostics. 4. Select File > Export > Electronic Filing > Return on the menu bar to open the Select Returns for Export dialog. 5. On the Select Returns for Export dialog, select Send for esign. 6. Click Export. If you select the Publish esigned copy to Portal option, a signed copy of the return publishes to CCH Portal after the taxpayer (and spouse, if applicable) signs the return. If the return is not already associated with a client portal, you will be prompted to make the association with the portal during the upload process. Even though the 8879 can be published to Portal and there will be records on the AssureSign Web site with timestamps as to when it was signed, we still recommend that you keep a copy, paper or Page 5

6 CCH esign ProSystem fx Tax electronic, of the signed 8879 on file in accordance with the applicable laws, rules, and regulations (see note below). 7. On the Send 8879 for e-signature dialog, click Start. Important Note: Although CCH esign maintains a copy of signed documents on AssureSign servers for up to 24 months, CCH esign is not designed for indefinite storage. Just as you maintain and store your clients tax returns, we encourage you to also maintain and store copies of their e-signed Form 8879 and other important documents that have been e-signed. As noted in the CCH esign license agreement, It is Customer s sole responsibility to backup and maintain on Customer s own systems all Customer esign Information as required by applicable laws, rules and regulations. Signer Experience There are two methods for signing documents, with and without authentication. Without authentication does not ask any questions to verify the signer s identity. With authentication requires the signer to answer several questions correctly before the signing process begins. The questions are based on public and credit history information that is likely known only to the signer. The IRS requires Knowledge Based Authentication (KBA) for electronic signatures on the Page 6

7 ProSystem fx Tax After you send a request for esign, the signer receives an alerting them to the request. Here is an example of the . CCH esign You can customize the text of the s and add your firm logo to the web pages your client sees during the signing process. Page 7

8 CCH esign After the signer clicks Begin Signing, the Welcome page displays. ProSystem fx Tax On the Document Signing dialog, the signer can perform the following actions: review the document send feedback decline signing sign the document The document available for viewing will not include any PDF file attachments. The signer will be prompted to answer the KBA questions. They can opt to skip one question during the authentication process by clicking Skip. Otherwise, click Continue after selecting the appropriate answer for the questions. Page 8

9 ProSystem fx Tax CCH esign If the signer fails to respond with the correct responses, the document signing is cancelled. The tax preparer is notified by . If the signer successfully answers the KBA questions provided, a signing password is provided. This allows the signer to stop and restart the signing process later. This password can be modified by the user if he or she prefers to create a password instead. To proceed with signing, the signer must select the check box indicating that they read and agree to the terms and conditions. On the same dialog, the signer can also download a copy of their tax return for review, send feedback, or decline signing by clicking the appropriate tab. The signer can also opt to continue later by using the Options menu. If the signer sends feedback or declines to sign, an will be sent to the preparer with that information. Page 9

10 CCH esign ProSystem fx Tax The Signer can provide a signature using a mouse, stylus or touch pad. Follow the on-screen instructions to complete the signing. Page 10

11 ProSystem fx Tax CCH esign Electronic Filing Status System Updates The Electronic Filing Status System makes real-time updates when receiving completed signatures. When you upload a return requesting esign for electronic filing, the program applies a tag. Upon completion of the signature, the Signature Form-Received column updates with the date of the signature automatically. The date appears in blue font. If the taxpayer does not use esign and instead sends a paper signature, you can enter the date of receipt. The manually entered date appears in a black font. To prevent inadvertent filing of returns with the IRS before receiving a signature, the returns sent for esign do not appear on the Release Returns tab until a date has been entered in the Signature Form-Received column. Document Management Functions After sending a document for esign, you can: View the document Cancel the document Modify the password to view completed document Modify the recipients' address In your AssureSign account, go to Reports > Document Search and enter the date or other criteria for the search. Select the document by clicking the document name. Select the desired task under Document Tasks and follow the on-screen instructions to finish. To modify the recipient s address, click Edit in the Signatories section. Page 11

12 CCH esign Customizing Notifications Modifying CCH designs is a three-step process: Import CCH templates Edit CCH designs Associate custom templates with the appropriate return type in Office Manager Import CCH Templates ProSystem fx Tax CCH has provided templates as a starting point for customizing your notifications. You can download these templates from the CCH Support Web site or access them from your tax install at: X:WFX32/SAMPLES/ESIGN folder, where X is the drive where you loaded the program: CCH-8879_Ind_Single. Used when sending single returns CCH-8879_Ind_Joint. Used when sending joint returns Steps to Import the Templates 1. In your AssureSign account, click the Templates tab. 2. Click New. 3. Select Import template from a Template Export File and click Next. 4. Select the appropriate ADT file from the X:WFX32/SAMPLES/ESIGN folder, where X is the drive where you loaded the program. 5. Rename the template. 6. Select Account and Child Accounts from the Accessibility drop-down list. Page 12

13 ProSystem fx Tax CCH esign Your custom template needs to be set up with Account and Child Account accessibility in order for the custom template to be available in Office Manager. 7. Click Next through each of the dialogs. Do not change any settings during this process 8. Click Finish to complete the import. Edit CCH Designs Once imported, these template designs become available in your AssureSign account (Administration > Notifications- s). Click Edit to open the design. Save your edits. You can associate custom templates with the appropriate return type in Office Manager. In Office Manager, go to Configuration > esign and click Customize on the esign Setup dialog. Select the appropriate custom template for the return type. Merge Fields In addition to the customization available in the default designs for all CCH-8879 templates, these template-specific merge fields can be added to the designs: Firm Name Firm Phone Preparer Name Preparer Address Preparer Phone Account Number ClientID ERO Name ERO Phone ERO Address ReturnID To use a merge field, enclose the merge field text in square brackets. This marks the text as "merge field information" and it functions like a formula field in the subject or body of the . For example, "If you choose not to esign, or have any questions about the return, please contact me at [Preparer Phone] or me at [Preparer Address]." This fills the Preparer Phone and Preparer Address associated with that specific document. Page 13

14 CCH esign ProSystem fx Tax Configuring Reminders for the AssureSign Account In your AssureSign account, go to Administration > Settings > Document Preferences and edit the Default days until document expires and Default Expiration warning period fields as appropriate. For example, if Default Number of Days Until Document Expiration is set to 60 and Default Expiration Earning Period is set to 7, all documents expire and are no longer available for esign 60 days after creation. A reminder goes out 7 days prior to the expiration date. You can override these settings and add additional reminders at the account template level or when sending the document. Managing Branding You can add your firm s logo and modify color preferences of signing screens to match your firm s branding. In your AssureSign account, click the Administration tab and click Customization. To customize colors, select Theme/Colors (Common) and make appropriate selections. To upload your logo, follow the instructions under Page Header (Common). Page 14

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16 CCH esign States Not Allowed Allowed Signature Document not Required (Allowed) ProSystem fx Tax No Individual Income Tax Return State List Alabama Connecticut Hawaii Alaska Arizona Missouri Idaho Florida* Arkansas Montana Kansas Nevada California Nebraska Maine New Hampshire* Colorado Oregon Minnesota South Dakota DC Utah North Carolina Tennessee* Delaware North Dakota Texas* Georgia Ohio Washington Illinois Wisconsin Wyoming Indiana Iowa Kentucky Maryland Massachusetts Mississippi New Mexico New York Oklahoma Pennsylvania Rhode Island South Carolina Vermont Virginia States With Conditions Louisiana - esign is not allowed for non-resident returns or when filing as state-only Michigan - esign is not allowed when MI-8453 is used, federal PIN s must be entered New Jersey - esign is not allowed when NJ-8879 is used West Virginia - esign is not allowed when filing as state-only *FL, NH, TN, and TX have business returns available through the 1040 software that don t require signature documents, so esign would be possible for the federal 8879 when one of these state returns is present. Page 16