Electronic Signatures in Global and National Commerce Act (ESIGN)

Definition

ESIGN is a federal law that establishes electronic signatures as legally equivalent to handwritten (wet) signatures for most commercial and legal transactions in the United States. It creates a baseline legal framework for e-signature validity but does not override agency-specific requirements, such as those set by the IRS for tax documents. CPAs must understand that ESIGN compliance alone does not guarantee compliance with IRS or state tax authority e-signature rules.