Form 8879 pe 2015-2026

Definition and Purpose of Form 8879-PE

Form 8879-PE is the IRS e-file Signature Authorization specifically designed for partnerships that need to file Form 1065, which is the Return of Partnership Income. This form allows general partners or limited liability company (LLC) member managers to officially authorize an electronic return originator (ERO) to e-file the partnership's return. The significance of Form 8879-PE lies in its facilitation of electronic signatures, enabling partners to use a personal identification number (PIN) instead of a handwritten signature, thus streamlining the filing process.

Key Components of Form 8879-PE

• E-File Authorization: Grants permission for the ERO to submit the partnership return electronically.
• Verification Responsibilities: Outlines the responsibilities of both the general partner (or member manager) and the ERO in terms of validating and submitting the return.
• Retention Requirements: It is crucial for the ERO to retain this form in their records, as it should not be submitted to the IRS unless requested.

Steps to Complete Form 8879-PE

Completing Form 8879-PE involves a straightforward series of steps that ensure proper authorization for electronic filing.

1. Gather Necessary Information:

   • Collect details on the partnership, including the name, address, and employer identification number (EIN).
   • Ensure you have the names and identifying information of all partners or member managers.

2. Review the Partnership Return:

   • Before signing, it is essential to review the e-filed partnership return (Form 1065) to ensure accuracy.

3. Fill Out the Form:

   • Input the required information into Form 8879-PE, including the partnership’s details and the designated ERO’s information.

4. Signature and PIN Assignment:

   • The designated partner or member manager must sign the form and assign a PIN. This PIN is crucial as it authorizes the ERO to submit the return electronically.

5. Retain the Form:

   • The ERO must keep the form on file. It should be readily available for review in case of an audit or IRS inquiry.

Important Considerations

• Ensure that the information matches what is submitted on Form 1065.
• Maintain communication with the ERO to clarify any doubts regarding the e-filing process.

Who Typically Uses Form 8879-PE?

Form 8879-PE is primarily utilized by partnerships, which include multiple partners engaged in business together, or by LLCs structured as partnerships for tax purposes. The following parties commonly use this form:

• General Partners: Individuals who have unlimited liability and manage the day-to-day operations of the partnership.
• Limited Partners: Partners who have limited liability and typically do not participate in managing the business.
• Member Managers of LLCs: Individuals responsible for overseeing the LLC’s operations who may need to file taxes as a partnership.

This form is a critical tool for ensuring compliance with IRS requirements for electronic signatures, thus expediting the e-filing process.

Legal Use of Form 8879-PE

Form 8879-PE is legally significant as it adheres to the provisions of the IRS’s Electronic Signatures in Global and National Commerce (ESIGN) Act. Here are key legal aspects regarding its use:

• Binding Authorization: The signature on Form 8879-PE, along with the assigned PIN, has the same legal effect as a handwritten signature, enabling the ERO to file the partnership return on behalf of the partners.
• Record Keeping: The form acts as proof of consent from the partners. It must be available for IRS inspection but not sent with the electronic return unless specifically requested.
• Compliance Necessity: Failure to properly complete or retain Form 8879-PE can result in penalties or delays in the processing of the partnership return.

Recommendations for Legal Compliance

• Ensure all partners are aware of and agree to the contents of Form 8879-PE before signing.
• Keep the form secured as part of your financial records for any future audits or inquiries.

Examples of Using Form 8879-PE in Practice

Form 8879-PE is integrated into various scenarios involving partnerships that file taxes electronically. Here are illustrative examples:

Example 1: Multi-Partner Partnership

• A partnership with four general partners uses Form 8879-PE to authorize an ERO to file Form 1065 electronically. Each partner must review the tax return to confirm its accuracy before signing the form, allowing seamless submission without handwritten signatures.

Example 2: LLC Structured as a Partnership

• An LLC with three members elects to file as a partnership. The member manager completes Form 8879-PE after reviewing the e-filed return, ensuring that the members understand their tax liabilities before the ERO e-files on their behalf.

Example 3: Compliance During Auditing

• In the case of an IRS audit, the electronic return originator presents Form 8879-PE as evidence of consent from the partners. This not only supports the validity of the e-filing but also highlights the importance of keeping accurate records.

Key Dates to Remember

• March 15: Due date for Form 1065.
• Extensions: Submit Form 7004 to request a six-month extension.
• IRS Notices: Be aware of any notifications from the IRS regarding filing changes or additional requirements.

Maintaining awareness of these dates ensures that partnerships avoid late filing penalties and other compliance issues.