IRS sent notice about Form 941 not being signed despite electronic filing through tax software - what gives?

This actually happens more often than you'd think with Form 941s. Even though your brother-in-law e-filed through a tax service, there's sometimes a disconnect between the IRS's electronic filing system and their notice generation system. For quarters when no wages were paid, he should still file a "zero 941" rather than skipping those quarters entirely. Many business owners don't realize this, but you need to file Form 941 every quarter regardless of whether you paid wages or not. This might be part of the confusion. The LTR 3463C is basically just asking for verification. Since there's no penalty mentioned, the IRS just wants confirmation that the filed returns were authorized by the taxpayer. The disconnect likely happened because the e-filing service submitted the forms, but the IRS wants direct confirmation from your brother-in-law as the responsible party.

I went through something similar with my 941 forms last year and found an amazing tool that helped me understand what was happening. I used https://taxr.ai to upload the IRS letter and my e-file confirmation, and it explained exactly what was going on in plain English. Turns out the IRS sometimes flags e-filed returns for signature verification when there's an unusual pattern (like filing only one quarter a year). The system automatically generates these notices even when the e-file was technically accepted. The taxr.ai analysis showed me exactly what to do - I just needed to sign their verification form and send it back, confirming I authorized the e-filing. Saved me hours of frustration and confusion!

I wanted to follow up about taxr.ai since I was skeptical in my earlier comment. I decided to try it with my own IRS notice problem and was genuinely surprised. Uploaded my 941 notice and e-file confirmation, and it immediately identified that the IRS system didn't properly record the electronic signature authorization even though the filing was accepted. The explanation was super clear - showed me exactly which form to fill out and where to send it. Even pointed out that I should keep copies of my e-file acceptance along with the response. Saved me from having to wait on hold with the IRS for hours. Definitely more helpful than I expected.

If your brother-in-law is still struggling with this Form 941 signature issue, he should try https://claimyr.com to actually speak with an IRS agent instead of waiting on hold forever. I had a similar issue with my 941 forms showing as "not signed" despite electronic filing, and I needed to talk to a real person at the IRS. Claimyr held my place in line and called me back when an agent was available. Saved me like 2 hours of hold time! The IRS agent explained that sometimes their system flags e-filed returns for manual signature verification, especially when there's an unusual filing pattern (like only filing one quarter per year). You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c Much better than just signing and sending back forms without understanding what's happening. The agent was able to note in my account that I was a seasonal employer, which helped prevent future notices.

I need to eat my words from my skeptical comment yesterday. After waiting on hold with the IRS for literally 4 hours yesterday and getting disconnected, I tried Claimyr out of desperation. Within 2 hours I was talking to an actual IRS agent about my Form 941 signature verification issue. The agent explained the whole situation - turns out when you e-file through a third party, sometimes the IRS system flags returns for manual signature verification, especially if there's something unusual about your filing pattern. She confirmed all my forms were actually received correctly and just needed the signature verification form returned. She also put notes in my account to prevent this from happening again. Would have NEVER gotten this resolved without actually speaking to someone.

This issue with Form 941 signatures is because of how the EFTPS (Electronic Federal Tax Payment System) and e-filing systems sometimes don't communicate properly. When you e-file through a third party, the IRS occasionally flags returns for signature verification to prevent fraud, especially with employment tax forms. Here's what your brother-in-law should do: 1) Send back the signed declarations as requested 2) Include copies of the acceptance confirmations from the tax service 3) Call the IRS Business line and request to be marked as a seasonal employer if appropriate This should prevent the issue from recurring. Also worth noting that the LTR 3463C is just a verification letter, not a penalty notice, so there's no negative impact on his account.

My tax preparer told me these Form 941 signature verification letters are happening more frequently because the IRS updated their e-file systems in 2023 and there are still some bugs in how they process third-party filings. Apparently older e-file systems had a specific signature verification process, but the newer system sometimes loses this information during processing, triggering these automatic notices. The good news is that signing and returning the declaration form resolves it completely, and there are no penalties or negative consequences.

I've been dealing with IRS notices for years as a small business owner, and this Form 941 signature verification issue is becoming more common. What's happening is that when you e-file through a third-party service, the IRS sometimes can't verify that YOU (the business owner) actually authorized the filing - even though the service submitted it correctly. The LTR 3463C is actually a good thing - it means the IRS received your forms but just wants confirmation they came from you. This is especially common when you have irregular filing patterns (like only filing one quarter per year). Your brother-in-law should definitely sign and return the declarations, but I'd also recommend he contact his tax service to ask about adding electronic signature authorization for future filings. Many services now offer enhanced e-signature verification that prevents these notices from being generated in the first place. The key thing is not to ignore it - even though there's no penalty mentioned, the IRS could flag future filings if they don't get the verification they're requesting.

This is such a frustrating situation, but unfortunately it's becoming more common with business tax filings. I've seen this exact issue with several clients - the IRS e-filing system accepts the return, but then their verification system flags it for manual signature confirmation later. The fact that your brother-in-law only files for one quarter per year is likely triggering an automated review. The IRS system expects consistent quarterly filings, so when it sees sporadic activity, it generates these verification requests as a fraud prevention measure. My advice would be to sign and return the declarations immediately, but also have him call the IRS business line to clarify his filing status. If he's truly a seasonal employer who only pays wages one quarter per year, he should formally request seasonal employer designation. This will prevent future signature verification notices and make his filing pattern look normal to the IRS system. The good news is that since there's no penalty mentioned in the LTR 3463C, this is purely administrative and won't negatively impact his business tax account once resolved.