Return preparer signature options.

Notice 2004-54 allows return preparers to sign original returns, amended returns or extension requests by the following alternative methods: (1) rubber stamp, (2) mechanical device or (3) computer software program.

Overview: Under Temp. Regs. Sec. 1.6695-1T(b), a return preparer must sign each return he or she prepares after completing it and before presenting it to the taxpayer. A return preparer is subject to a $50 civil penalty for each return he or she fails to sign (up to a maximum of $25,000 per calendar year for any single type of failure, according to Sec. 6695(b)).

Methods: In Notice 2004-54, the Service authorizes return preparers to sign original returns, amended returns and extension requests by rubber stamp, mechanical device or computer software program. These signing methods must include either a facsimile of the preparer's signature or his or her printed name. Return preparers using one of these alternative means are personally responsible for affixing their signatures to returns or extension requests. If they use an alternative signing method, they must provide all of the other preparer information required on returns and extensions, such as (1) name, address and relevant employer identification (ID) number, (2) individual ID number (Social Security number or preparer tax ID number) and (3) phone number.

The notice applies only to return preparers as defined in Regs. Sec. 301.7701 15(a). It does not provide alternative methods for a return preparer's signature for any other type of document currently required to be manually signed, such as:

* Elections;

* Applications for accounting-method changes;

* Powers of attorney; and

* Consent forms.

In addition, the IRS emphasizes that the notice does not change the requirement that returns or extension requests be signed by the person (i.e., the taxpayer) making the return or request, by handwritten signature or other authorized means.

When effective: Notice 2004-54 applies to any original return, amended return or extension request filed after 2003.