CCH® eSign

ProSystem fx Tax
CCH eSign
CCH® eSign
Introduction
CCH® eSign 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
(http://www.irs.gov/pub/irs-pdf/p1345.pdf) 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 email 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.
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Setup
Licensing
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 1-800-739-9998, 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 email address of the administrator for your CCH eSign
account.
3. Click Setup.
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CCH eSign
Accessing your AssureSign Account and Setting Up Users
The CCH eSign administrator will receive an email 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.
2.
3.
4.
Open AssureSign and click the Administration tab.
Click Users on the navigation pane and click New.
The name, email and role fields are required.
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.
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For Form 8879
Set up tax preparers as users in the AssureSign account. Use the same email address used for the preparer in
ProSystem fx Tax when you set up the user for your AssureSign account.
If you use a centralized email address as the tax preparer email address, use this email address to establish a
user in your AssureSign account. If you use multiple tax preparers each with a separate email, 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 email address in this order:
1. The email address specified in Office Manager > Configure Staff > Setup > Tax preparer > E-mail
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 email address entered in the return at General > Return Options > Preparer Information –
Overrides Office Manager > Preparer email address (Interview Form 3).
3. Tax preparer email address entered in the return at General > Electronic Filing > Electronic Return
Originator > Overrides > Preparer email address (Interview Form 3).
4. The email address provided for the ERO in Office Manager > Configure Office Group > Setup >
Electronic Filing Options > ERO > Preparer email address.
If a user with the tax preparer email 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 8879.
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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 email addresses at General > Basic Data (Int. Form 2 Boxes 98 and 99).
For “married filing joint” returns, you must enter a separate email address for both taxpayer and
spouse. Each receives a separate email at their respective email address to electronically sign Form
8879.
3. 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
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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 8879.
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After you send a request for eSign, the signer receives an email alerting them to the request. Here is an
example of the email.
You can customize the text of the emails and add your firm logo to the web pages your client sees
during the signing process.
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After the signer clicks Begin Signing, the Welcome page displays.
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.
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If the signer fails to respond with the correct responses, the document signing is cancelled. The tax
preparer is notified by email.
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 email will be sent to the preparer with that
information.
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The Signer can provide a signature using a mouse, stylus or touch pad. Follow the on-screen instructions to
complete the signing.
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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' email 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 email address, click Edit in the
Signatories section.
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Customizing Email Notifications
Modifying CCH email designs is a three-step process:
 Import CCH templates
 Edit CCH email designs
 Associate custom templates with the appropriate return type in Office Manager
Import CCH Templates
CCH has provided templates as a starting point for customizing your email 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.
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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 Email Designs
Once imported, these template email designs become available in your AssureSign account (Administration >
Notifications-Emails). Click Edit to open the email 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 email designs for all CCH-8879 templates, these
template-specific merge fields can be added to the email designs:
 Firm Name
 Firm Phone
 Preparer Name
 Preparer Email Address
 Preparer Phone
 Account Number
 ClientID
 ERO Name
 ERO Phone
 ERO Email 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 email. For example, "If you
choose not to eSign, or have any questions about the return, please contact me at [Preparer Phone] or email
me at [Preparer Email Address]." This fills the Preparer Phone and Preparer Email Address associated with that
specific document.
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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).
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States
Not Allowed
Allowed
Signature Document
not Required (Allowed)
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.
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