The Internal Revenue Service has broadened its use of electronic signatures across dozens of tax forms, enabling taxpayers and businesses to complete documents online instead of mailing paper copies. Announced this week on the IRS website, the change is part of new initiatives funded by the Inflation Reduction Act that aim to improve efficiency, reduce costs, and strengthen digital access for millions of Americans.
The IRS electronic signature program now applies to more than 40 forms that previously required in-person or mailed submissions. These include estate and gift tax returns, business forms, and agreements connected to income tax filing. The agency stated that the expansion supports its modernization plan to streamline tax administration and ensure greater consistency.
Using approved technology, taxpayers can sign documents by typing their names, uploading scanned signatures, or signing with secure software tools. The IRS website guidance notes that standard file formats, such as PDF, JPEG, and TIFF, are accepted. Each digital page displays a locked padlock icon to indicate a secure connection.
“This step reflects our commitment to improving service and efficiency,” said IRS Commissioner Danny Werfel. “By implementing electronic signatures, we’re reducing paper-based procedures, helping taxpayers complete forms faster, and allowing IRS employees to focus on higher-value work.”
The agency estimates that digital completion of forms could save millions of dollars annually in postage, printing, and distribution costs. For consumers and companies, the change reduces the risk of lost mail and delays in receiving refunds.
Through the Inflation Reduction Act, Congress allocated funds to upgrade the IRS’s digital infrastructure and improve taxpayer access. This public law also authorizes the creation of secure online accounts where taxpayers can review income information, pay taxes, and sign documents electronically.
The law’s provisions aim to modernize how the federal government manages information while reducing administrative burdens across departments. The IRS is working closely with the Department of the Treasury and other offices to implement these improvements.
White House officials said the initiative is part of a broader plan to make government programs more efficient and responsive. It aligns with federal mandates to increase security, improve communication, and provide clear guidance on how agencies use technology to benefit taxpayers and employers alike.
Businesses and individuals who qualify for specific tax credit programs may now complete and sign related forms electronically. This includes forms for employment taxes, estate property, and corporate income filings. The IRS expects that digital implementation will simplify the process for eligible taxpayers to apply for credits and document their income.
Employers using the system can submit Forms 940, 941, 943, and 945 electronically, reducing manual processing and potential errors. According to IRS estimates, paper filings dropped by more than 4 percent between 2024 and 2025—a shift the agency attributes to the growing use of electronic signatures and online filing.
Companies, employees, and preparers will follow established rules to verify identities when signing. Procedures require government-issued identification, prior-year tax data, or verification through a secure IRS account.
The Internal Revenue Service emphasizes that security remains a top priority. Electronic signatures are encrypted and stored in accordance with federal information standards. When signing online, users should verify the presence of the locked padlock icon and the official IRS.gov domain to ensure the authenticity of the site before submitting forms.
IRS employees processing digital forms follow strict procedures to protect taxpayer data and ensure the accuracy of completion. The agency uses layered verification to confirm identity and authority, particularly when a preparer acts on behalf of a business or dependent taxpayer.
Guidance on acceptable signing methods, eligible forms, and authentication steps is available on the IRS website. The agency continues to release updated rules as part of its modernization projects designed to improve efficiency and accuracy.
The IRS plan includes expanding electronic services to cover most tax returns by 2025. Upcoming improvements will add secure two-way messaging, digital correspondence, and access to electronic versions of all IRS notices. The agency is also exploring technology-driven assistance tools to support taxpayers worldwide.
As new programs roll out, the Internal Revenue Service aims to create a more efficient system that benefits taxpayers, employers, and other beneficiaries of federal initiatives. These changes reflect an ongoing shift in how the federal government handles income, enforces tax provisions, and administers administrative processes.
“This is an important milestone in the IRS’s modernization journey,” Werfel said. “Our goal is to make filing taxes as straightforward and secure as possible while improving accountability and service.”
By William Mc Lee, Editor-in-Chief & Tax Expert—Get Tax Relief Now
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