The TaxCycle Notification Service watches and captures notifications of signing events coming from TaxFolder and DocuSign®. Then, if TaxCycle is open and connected to the Notification Service, it receives those messages and tracks them in the return.
You can tell whether TaxCycle is connected to the Notification Service by looking at the status icon in the blue bar at the bottom of the window. Click the button once to manually check the status:
You can disable this connection from the TaxCycle Notifications page under Service Providers in options.