IVES Participants – Are you meeting the IRS 4506T requirements?

eSignature and ePayment News and Trends

To participate in the Income Verification Express Service (“IVES”) program using electronic signatures, all participants must:

  1. Use an independent party to audit and ensure that the electronic signature requests meet all the requirements set forth by the IRS;
  2. Implement an audit process that includes a monthly sample size review of 125 electronically signed 4506-T forms; and
  3. Provide the audit findings annually to the IRS by January 31 of each year, including both the monthly results as well as the total annual computations.

IVES participants with audit findings that show a failure to meet all requirements will be prohibited from continuing to use electronic signatures.

As part of the IRS Requirements, IVES participants must ensure that the process used to sign the 4506-T Document includes each of the following elements:

  • Authentication
  • Consent
  • Electronic Signature
  • Tamper-Proof Seal
  • Audit Log
  • Retention

Because audit findings must be submitted to the IRS by January 31st of the following year, for 2019, IVES participants must submit their audit performed by an independent party by January 31, 2020.

If you are an IVES participant but have not yet begun your audit process using an independent party, we have vast experience in completing these audits in an efficient and timely manner to ensure that you meet the January 31, 2020 deadline.