Important: The IRS requires identity verification for e-Signatures. Liscio meets this requirement using KBA - a secure way to confirm a signer's identity before they sign an eDoc. If a signer's identity cannot be verified, a handwritten signature is required.
What is KBA?
KBA (Knowledge-Based Authentication) asks the signer a series of personal, multiple-choice questions based on their credit history.
KBA ensures:
IRS-compliant identity verification
A secure and easy signing experience
Peace of mind for both firms and clients
How to Enable KBA When Sending an eDoc
Begin creating your eDoc as normal.
In the upper-right corner of the send screen, locate the KBA checkbox.
Check the box to turn on identity verification for this document.
Send the eDoc. The client will be prompted to complete KBA before they can sign.
💰 Pricing note: KBA costs an additional $2 per signer, on top of the standard $1 eDoc fee.
How the KBA Process Works for Your Client
Once the client opens the eDoc, here's what happens:
The client is presented with 4 multiple-choice identity questions drawn from their credit history (past addresses, purchases, rentals, etc.).
If they answer 1 question incorrectly, they receive 2 additional questions to answer.
They have 4 total attempts to pass KBA.
If all attempts are unsuccessful, the agreement is automatically canceled, and a comment is posted to notify the Task Owner of the failure.
💡 Pro Tip – Improve Success Rate: Before starting KBA, your client can enter the last four digits of their Social Security Number. This helps LexisNexis generate more accurate, relevant questions and improves their chances of passing.
Technology Behind KBA
Liscio partners with Adobe and uses LexisNexis, a leading identity verification provider. Questions are randomly generated from the client's credit history and may relate to past purchases, rentals, and addresses.
Can a Client Fail KBA?
Yes, though it is uncommon. The most frequent reasons for failure are:
Reason | Description |
Thin credit history | Not enough data to generate reliable questions |
New adult or new citizen | Limited financial history on record |
Extended time outside the U.S. | Gaps in U.S.-based credit activity |
Questions about another person | Data mix-up in credit records (e.g., shared address) |
Incorrect answers | Signer doesn't recall the right details |
"Almost correct" answer chosen | Signer selects a close match instead of "None of the Above" |
Answers genuinely unknown | Client doesn't recognize the questions at all |
Troubleshooting: What To Do When a Client Fails KBA
Option 1 - Resend the eDoc with KBA (Recommended First Step)
Use this if the failure was likely due to a mistake, distraction, or a correctable data issue.
Go to the relevant Task in Liscio.
Locate the failed eDoc and open it.
Click Resend to issue a new KBA session to the client.
Before the client retries, share the following tips with them:
Use your full legal name exactly as it appears on official records.
Have your current and prior addresses in mind - questions often reference older addresses.
Enter the last 4 digits of your SSN at the start to improve question accuracy.
Read each question carefully - if none of the answers match your history, select "None of the Above."
Ask the client to complete KBA in one uninterrupted session.
Option 2 - Send as a PDF for Handwritten Signature
Use this if the client has failed KBA a second time, or if their situation makes KBA unlikely to succeed (e.g., new adult, new citizen, no U.S. credit history).
Go to the relevant Task in Liscio.
Re-send the document without the KBA checkbox enabled, or export/download the form as a PDF.
Instruct the client to:
Print the PDF.
Sign by hand.
Upload the signed document using the Liscio mobile app or web portal.
Once uploaded, the Task Owner will be notified to review and process the signed document.
Quick Reference: KBA Failure Scenarios & Recommended Actions
Situation | Recommended Action |
Client failed on first attempt | Resend with KBA; coach them with the Pro Tips above |
Client failed a second time | Switch to PDF + handwritten signature |
Client is a new adult or new citizen | Skip KBA; go straight to PDF option |
Client has no U.S. credit history | Skip KBA; go straight to PDF option |
Client got questions about another person | Resend once; if it happens again, use PDF option |
Client selected "almost correct" instead of "None of the Above" | Resend with KBA and coach on answer selection |
Agreement auto-canceled after 4 attempts | Resend as PDF for handwritten signature |
Frequently Asked Questions
Q: Will the client be charged again if I resend with KBA? Yes. Each KBA attempt is billed at $2 per signer. If you resend with KBA enabled, a new $2 charge applies.
Q: Can I turn off KBA after already sending the eDoc? No. Once an eDoc is sent with KBA enabled, the setting cannot be changed for that document. You would need to void it and resend.
Q: What happens to the original eDoc after a KBA failure? The agreement is automatically canceled. A comment is posted to the Task to notify the Task Owner. No signature is captured.
Q: Is KBA required by the IRS? The IRS requires identity verification for e-Signatures on tax documents. KBA is one approved method. A handwritten signature on a printed document is also acceptable.