Signing the Return and Payment/Refund Due

1. Signing the Return

Every taxpayer must sign their own return. A joint return must be signed by both the taxpayer and the spouse. The date of signing, occupations, daytime telephone number, and email should be entered in the appropriate spaces.

If a spouse died before the end of the year and the surviving spouse files a joint return, the If a spouse died before the end of the year and the surviving spouse files a joint return, the executor or administrator must sign the return for the deceased spouse. If no one has been appointed executor or administrator, the surviving spouse can sign the joint return and enter “Filing as surviving spouse” in the signature area.

did you know

There may be situations when a taxpayer or spouse can sign for each other. Research is one of the skills a tax preparer needs to master. When a new or unknown situation presents itself, admitting more research needs to be done is vital.

If this situation was presented to you as a tax preparer, you could find more direction in Publication 501, Dependents, Standard Deduction, and Filing Information.

If you like to search the internet for answers to your tax questions, be careful. There will be many suggestions you may be directed to that are incorrect. One tip is to use the key terms you are looking for and then add “IRS” before searching. This will direct you to actual IRS links.

For example, search for “signing joint returns IRS” and you will most likely see the top suggestions be links to IRS webpages or publications regarding the topic.

Paid tax return preparers must sign every return they are paid to prepare. The date the return was prepared should also be entered. The preparer must enter their preparer tax identification number (PTIN) in the space provided. A PTIN is required annually for anyone who prepares or assists in preparing federal tax returns for compensation.

In addition, the tax preparer must be sure their employer’s company name, address, ZIP code, phone number, and employer identification number are entered in the signature section.

A self-employed preparer should enter their own name, PTIN, address, ZIP code, and phone number where they can be reached all year. They should also check the Self-employed box.

hint

If you plan to prepare tax returns for compensation in the upcoming tax season, you may want to learn about the process of applying for a PTIN. The IRS website should be able to provide the details about how and when you should apply. There may also be special registration requirements for your state. Your state’s Department of Revenue website is usually a good place to check.

1a. Identity Protection PIN

The IRS may provide an Identity Protection Personal Identification Number (IP PIN) to taxpayers who are victims of identity theft. The Identity Protection PIN is a six-digit number that is attached to the taxpayer’s tax return account. It prevents anyone from filing a return only using the social security number, date of birth, and address. The PIN must be provided at the time the tax return is filed. If it is not provided, the return will not be processed by the IRS.

An Identity Protection PIN is only valid for one calendar year and a new PIN must be obtained for each new tax year.

Starting in 2021, taxpayers may request an Identity Protection PIN even if not victims of identity theft. More information can be obtained from the IRS website.

1b. Electronic Signatures

The majority of tax returns are filed electronically. Therefore, no paperwork is physically sent to the IRS. The taxpayer and paid tax preparer will still need to sign the tax return. This is accomplished using a personal identification number (PIN). This is different from the Identity Protection PIN discussed above. The PIN is a combination of any random five digits selected by the taxpayer(s) and a combination of five digits selected by the paid tax preparer. If the PIN is used, nothing has to be physically signed and mailed to the IRS. Another way to think of the PIN is that entering those five digits is in fact the taxpayer digitally “signing” the return. When the paid tax preparer enters their own PIN, the act of entering those numbers on the keyboard is in fact them digitally signing the return as the paid preparer.

big idea

Whether signing a tax return electronically or a paper form, the taxpayer and tax preparer are acknowledging and agreeing to the following statement:

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. The declaration of the preparer (other than the taxpayer) is based on all information of which the preparer has any knowledge.

1c. Mailing a Tax Return

If the taxpayer does not electronically file their return, the other option is to physically mail in their tax return. The Form 1040 would need signatures in all the appropriate areas of the form before mailing.

Depending on where the taxpayer lives and whether they are receiving a refund or enclosing a payment, the IRS provides specific addresses for the return to be mailed.

These addresses have been known to change year over year, so it is important to look up the address each year in the Form 1040 instructions.

2. Payment/Refund Due

After filing a tax return, the taxpayer ends up with either a refund or a balance due. Certain elections can be made directly on Form 1040, or with attached forms, to direct the IRS on how to proceed with the tax refund or balance due.

2a. Tax Refund

There are a few options on how a tax refund can be processed.

The refund can be:

• Mailed directly to the taxpayer.
• Directly deposited into a checking or savings account.
• Deposited to a traditional IRA, Roth IRA, or SEP-IRA.
• Used to purchase U.S. Treasury marketable securities and savings bonds from TreasuryDirect®.
• Applied as an estimated payment for the next tax year.

2b. Balance Due

There are a few payment options offered by the IRS.

Payments can be made:

• Online.
• By phone.
• Using a mobile device.
• Cash, check, money order, or direct transfer from a checking or savings account.
• Electronic Funds Withdrawal (EFW)

There are also additional options if the taxpayer cannot pay the entire balance due.

2c. Claiming a Refund for a Deceased Person (Decedent)

Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, is used to claim a refund on behalf of a deceased taxpayer.

2c.i. Who Must File Form 1310?

An individual claiming a refund on behalf of a deceased taxpayer must file Form 1310 if:

• They are NOT a surviving spouse filing an original or amended joint return with the decedent; and
• They are NOT a personal representative (defined later) filing, for the decedent, an original Form 1040, Form 1040-SR, or Form 1040-NR that has the court certificate showing the individual’s appointment attached.

EXAMPLE

Norma’s father died on June 5th. Norma is his sole survivor. Norma’s father did not have a will and the court did not appoint a personal representative for his estate. Norma’s father is entitled to a $400 refund. To get the refund, Norma must complete and attach Form 1310 to her father’s final return. She should check the box on Form 1310, line C; answer all the questions in Part II; and sign her name in Part III. Norma must also keep a copy of the death certificate or other proof of death for her records.

hint

Do not attach the death certificate or other proof of death to Form 1310. Instead, keep it for your records and provide it if requested.

2c.ii. Personal Representative

For purposes of Form 1310, a personal representative is the executor or administrator of the decedent’s estate, as appointed or certified by the court. A copy of the decedent’s will cannot be accepted as evidence that an individual is the personal representative.

EXAMPLE

Assume Mr. Brown died on January 10 before filing his tax return. On April 8 of the same year, Sam Smith was appointed by the court as the personal representative for Mr. Brown’s estate and Sam files Form 1040 for Mr. Brown. Sam does not need to file Form 1310 to claim the refund on Mr. Brown’s tax return.

However, Sam must attach to his return a copy of the court certificate showing his appointment.