How to e-sign with KBA (Form 8879)

To securely e-sign IRS Form 8879, you’ll need to verify your identity using Knowledge-Based Authentication (KBA)—a quick process that asks personal questions based on your financial history. Below, we explain how KBA works, the steps to sign, and what to do if you encounter an SSN verification error.

Covered here:

• KBA, explained
• How to e-sign with KBA
• Handling SSN verification error for KBA

KBA, explained

KBA or Knowledge-Based Authentication is the identity verification process that the IRS requires to sign Form 8879 electronically. The Knowledge-based Authentication (KBA) questions are generated from public databases and the financial history of the signer. 

KBA is only possible with a Social Security number (SSN), not an ITIN (Individual Taxpayer Identification Number). ITINs are issued to individuals for taxation purposes only. They are not meant to be used as identification for obtaining credit. Credit systems won’t recognize them as anything other than an incorrect SSN, so they cannot be used for KBA.

To make KBA a reliable method of verifying identity and keeping confidential data secure, various safeguards have been built into the KBA process. These safeguards can sometimes prevent some signers from completing a KBA. On rare occasions, the information in the public databases is incorrect and the signer is not able to provide matching responses. Various KBA studies indicate that the average success rate for the KBA is around 90%.

How to e-sign with KBA

Once you've got a document to sign with KBA, follow these steps for signing:

1. If you receive the signature request for the first time, read the Electronic Signatures Disclosure, agree to use e-signatures, check the box, and click Continue.

2. To start signing the document, click  Start signing at the top.

3. Review the content, then click the fields to e-sign where requested. Enter your signature and initials just once; they’re then used for subsequent documents.

4. Click Next to highlight the next field. Note: You cannot sign a document until all fields are filled in.

5. Once all fields are filled in, click  Finish with KBA. Answer the questions to verify your identity, then click Finish. You get two attempts for KBA and need to answer at least three out of five questions correctly.

You’ll see a notification at the top of the page when the document has been successfully signed.

Handling SSN verification error for KBA 

If you encounter the error message: " Unfortunately, there are no questions available to verify your identity for the social security number provided," it means our KBA provider couldn't gather enough data from credit bureaus or public records to create the required set of five questions based on the provided SSN. This typically occurs when your financial activity hasn't been substantial enough in the public eye to generate the verification questionnaire.

Some reasons why signers may not be able to complete the KBA process are (but are not limited to):

• A newly married taxpayer whose public records use their maiden names and previous addresses.
• The information in public records may be incorrect and our software may not be able to match this information in the return.
• The information in the public databases may be incorrect and your client may be unable to answer those questions.
• Young clients or clients who have recently moved to the U.S. may not be good candidates for Form 8879 eSign since a successful KBA may not be possible if they have limited public records.

As of now, there isn't a direct workaround for this issue. To provide a compliant e-signature remotely, you may need to follow these steps:

1. Print the required forms.
2. Sign the printed forms by hand.
3. Scan the signed forms back into the system.

This process allows you to provide your signature while adhering to the necessary compliance standards, despite the SSN verification error.