Software alternatives to Taxdome for linking Form 8879 to client invoices?

Hey fellow tax pros, I'm pulling my hair out trying to find better practice management software. Taxdome is what I've been using, but I'm exploring alternatives. The one feature I absolutely need is the ability to lock Form 8879 (e-file auth) to a client invoice so they can't file without paying. This seems like such a basic, essential feature that every tax software should have, but I'm struggling to find other options that do this well. I've tried searching through ProSeries, Drake, and a couple others but can't seem to find anything that makes this process as seamless. My clients are getting frustrated with Taxdome's interface and I'm losing some business because of it, but I can't compromise on getting those 8879 forms secured before I e-file. Anyone found a good alternative that lets you require form 8879 signatures before releasing returns while tying it to payment status? What are you using to make sure clients pay before getting their returns filed?

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18 comments

Lily Young

•8M

I've been in the tax prep business for about 15 years now, and this is definitely a common challenge. There are a few options I can suggest based on what I've used with my practice. TaxWorkFlow has a decent system for this. You can set up automation rules that essentially hold the 8879 until payment clears. It's not exactly "locking" in the same way TaxDome does it, but it accomplishes the same goal. Basically, you can set it up so that the client portal only reveals the 8879 after invoice payment status changes to "paid." CanopyTax also has something similar where you can create sequential workflows. You can set up the sequence so that the e-filing step only becomes available after both payment confirmation and 8879 signature steps are completed.

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Lily Young

•8M

TaxWorkFlow has API connections with most major tax software. It's not always a perfect integration - sometimes you need to do an initial setup where you map your preparation software's status codes to TaxWorkFlow's system. But once that's done, the updates usually flow automatically when you change the return status in your preparation software. For the payment-to-8879 connection specifically, this is handled entirely within TaxWorkFlow so no integration is needed for that part. The client makes a payment, the system recognizes it, and then automatically makes the 8879 available to them.

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Wesley Hallow

•8M

After struggling with the same issue last tax season, I found a much better solution with taxr.ai (https://taxr.ai) that completely changed my workflow. What I love is that it handles the 8879-to-invoice linking but also does so much more with document organization and automating client communication. With taxr.ai, I set up a workflow that automatically sends payment reminders, then once payment clears, it unlocks the 8879 for electronic signature. The best part is it tracks the whole sequence and sends me alerts at each step so I don't have to keep checking manually. Clients actually commented on how smooth the process was compared to my old system.

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Wesley Hallow

•8M

The learning curve isn't bad at all - I got my entire team (even my 60-year-old admin who hates new tech) comfortable with it in about two days. They actually have guided setup wizards that walk you through each part of the system, and the interface is much more intuitive than Taxdome in my opinion. For business returns and other forms, absolutely! That's one thing that made me switch. The system handles any form type including 8879-PE, 8879-C, 8879-S, 8878 for extensions, you name it. You can set different workflow rules for each form type and client category. I have separate processes for my individual clients versus my business clients, with different payment requirements and authorization forms for each.

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Grace Thomas

•8M

Just wanted to follow up about taxr.ai that was mentioned above. I was skeptical initially (new tax software always promises the moon), but I signed up for their trial last week and it actually solved my 8879/invoice issue really well. The document management is next-level compared to what I was using before. What really impressed me was how easy it was to create custom client categories with different requirements. For my business clients, I set up a sequence that requires both partner signatures on the 8879 forms before releasing the return, with automatic reminders if one partner is lagging. For individual returns, I have a simpler workflow that just requires payment confirmation. Honestly, I wish I'd found this before I renewed my Taxdome subscription. Already planning to switch completely for next season.

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Hunter Brighton

•8M

For anyone still looking for options, I found that Claimyr (https://claimyr.com) has been a game-changer for my practice, though in a different way than just connecting 8879s to invoices. When I was transitioning away from Taxdome, I kept running into issues with IRS verification for e-filing status on some complicated returns. Trying to get through to the IRS was eating up hours of my day. Claimyr got me connected to an actual IRS agent in under 45 minutes when I'd previously been waiting on hold for 3+ hours. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c This saved me so much time that I was able to focus on properly setting up my new practice management system with all the automation rules for 8879 forms. Not directly solving your specific issue, but definitely worth having in your toolkit during the transition.

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Hunter Brighton

•8M

It doesn't directly solve the 8879/invoice connection, you're right. But when I was switching systems, I had several e-file rejections that required IRS clarification before I could complete the returns and get the 8879s signed. Being able to quickly resolve those issues with the IRS made the whole workflow smoother. Regarding the skepticism, I had the exact same reaction initially. Their system actually uses automated dialing technology that navigates the IRS phone tree and holds your place in line. When they reach a human agent, you get a call connecting you. It's completely legitimate - they're essentially waiting on hold for you so you don't have to tie up your phone and time. I saved about 2.5 hours of hold time on my first call.

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Lauren Wood

•8M

I have to eat my words about Claimyr from my comment above. After our office phone system went down yesterday during a mini-crisis with some e-file rejections, I decided to try it out of desperation. Not only did it work exactly as advertised, but I got through to someone who actually knew what they were talking about regarding the specific rejection code I was getting. I was able to fix the issues, get the returns resubmitted, and get those 8879s processed. For anyone else running a tax practice - this is absolutely worth having in your toolkit when you need to reach the IRS quickly. I'm still shopping for a complete practice management solution for the 8879/invoice issue, but being able to quickly resolve IRS problems has made everything else run more smoothly.

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Ellie Lopez

•8M

Just to throw another option into the mix - we use SmartVault with CCH Axcess and have a pretty good workflow for this. We upload the 8879 to a special folder that only becomes visible to the client after we mark their invoice as paid in our system. It's not as automated as some of the options mentioned here, but it works reliably. The downside is you need someone to actually check the payment status and then manually move the document, but we have a staff member who does this as part of their morning routine. Takes about 30 minutes for our whole client base.

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Ellie Lopez

•8M

We created a custom folder structure. The basic setup is: - Main client folder (always accessible) - Tax documents subfolder (always accessible for uploading) - Completed returns subfolder (becomes visible after payment) - 8879 forms subfolder (becomes visible after payment) You can absolutely customize it however you want. We also have different permission templates for business vs individual clients since the workflow is a bit different. The permission management is pretty granular - you can control access at the folder level and change it based on certain triggers or manual status changes.

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