Can We Accept a Copy Of the Tax Return That Is Signed With a Stylus On a Phone or Pad?

This AskRegs Q&A was updated on February 22, 2021 to include guidance that was added to Chapter 4 of the Application and Verification Guide volume of the 2021-22 FSA Handbook.

Scenario: Some students and/or parents are unable to: 1) obtain a tax transcript from the IRS; and 2) print/sign/scan the online copy of the tax return that was filed with the IRS and provide a wet signature. Their only option is to provide a stylus signature on the copy of the tax return itself. This has become a huge challenge for our office. It's impacting students and families who do not have a printer/scanner/copier/fax machine in their homes. Students and parents completed their taxes online with TurboTax or some other vendor and they only have the online tax return.

Answer: Yes. According to Chapter 4 of the Application and Verification Guide volume of the FSA Handbook:

"You can accept a paper or electronic copy of the return as long as it contains a signature. Acceptable examples would include, but are not limited to:

1. A signed paper return that the student either mailed or brought to the school.
2. A signed paper return that the student faxed or scanned and emailed.
3. An electronic copy that the student signed with a stylus or finger.
4. An electronic copy that we consider signed because it has an image of the student’s signature attached.

However, a signature on Form 8879, the IRS e-file Signature Authorization, is not an acceptable substitute for a signature on the tax return."

Note: This is general verification guidance and not specific to COVID-19, meaning it applies even after the COVID-related qualifying emergency is over. It also applies to the 2020-21 award year.

See also AskRegs Knowledgebase Q&A, Whose Signature Is Required on a Copy of the Tax Return That Is Accepted In Place of a Tax Transcript?