Train professional and administrative personnel on firm e-filing processes. Submit completed returns electronically only upon receipt of both the signed e-file authorization forms and documentation acknowledging the client’s review and approval of draft returns. Signed Form 8879, IRS e-file Signature Authorization, and state equivalents must be received by the firm before tax returns are filed electronically, and Form 8878, IRS e-file Signature Authorization for Form 4868 or Form 2350, and state equivalents must be received before extensions are filed. Retain documentation acknowledging the client’s approval and the e-file authorization form(s).

When filing electronically, save acknowledgments from the IRS or other tax authorities indicating return acceptance, not only receipt, for at least three years. Every year, claims are filed for returns submitted but not accepted by the IRS for e-filing. Reduce this likelihood by developing a system to identify returns not accepted by the IRS and establish follow-up procedures, including informing the client.