As a taxpayer, there are many forms you may need to fill out in order to file your taxes and handle other matters with the Internal Revenue Service (IRS). One important form to be aware of is Form 2848, which is also known as the Power of Attorney and Declaration of Representative form. Here are 15 things you need to know about Form 2848:
Purpose of Form 2848
Form 2848 is used to authorize an individual or organization to represent you before the IRS. This can be useful in a variety of situations, such as when you are unable to communicate with the IRS due to illness or disability or when you need to handle a complex tax issue that you are not familiar with.
Types of Representatives
There are several types of representatives that can be authorized using Form 2848. These include attorneys, certified public accountants (CPAs), enrolled agents, and other individuals who are authorized to represent taxpayers before the IRS.
Limited Vs. General Power of Attorney
When filling out Form 2848, you can choose between a limited power of attorney or a general power of attorney. A limited power of attorney authorizes your representative to perform specific acts on your behalf, while a general power of attorney authorizes your representative to perform all acts you could perform.
Authorization Period
When filling out Form 2848, you will need to specify the authorization period, which is the length of time that the representative is authorized to act on your behalf. This can be a specific date or an indefinite period of time.
Restrictions on Authorization
There may be restrictions on the authorization of your representative. For example, you may specify that the representative is only authorized to represent you for a specific tax year or for a specific type of tax matter.
Disclosure of Tax Information
By filling out Form 2848, you are authorizing your representative to receive confidential tax information from the IRS. This can include information about your tax return, your tax account, and any other tax-related matters.
Signature Requirements
Form 2848 must be signed by both the taxpayer and the representative. In addition, the signature of the taxpayer must be notarized or witnessed by an IRS employee.
Retention of Form 2848
Both the taxpayer and the tax resolution representative should keep a copy of Form 2848 for their records. The IRS also recommends that a copy of the form be kept with the taxpayer’s tax records.
Revocation of Authorization
You have the right to revoke the authorization of your representative at any time. To do so, you must submit a written statement to the IRS stating that you are revoking the authorization.
Changes to Authorization
If there are any changes to your authorization, such as a change in the representative or a change in the authorization period, you must file a new Form 2848 with the IRS.
Who Can Sign Form 2848
You may sign Form 2848 as an individual if you so choose. You must have the right to sign on behalf of a business entity, such as a corporation or partnership, if you’re doing so.
Special Instructions
In some cases, you may need to provide special instructions to your representative on how to handle your tax matters. For example, you may want your representative to communicate with you before taking any action on your behalf.
Electronic Signature
Form 2848 can be signed electronically using the IRS e-signature system. This allows you to sign the form electronically without the need for a physical signature.
Joint Tax Returns
If you are married and file a joint tax return with your spouse, both you and your spouse must sign Form 2848 if you want to authorize a representative to act on your behalf. If you and your spouse have different representatives, you can indicate that on the form, and the IRS will send separate copies of any correspondence to each representative.
Foreign Representatives
You can use Form 2848 to appoint a foreign representative if you’re a U.S. citizen or resident alien living abroad. To ensure that the IRS can send notices and other correspondence, the representative must have a U.S. address.
Form 2848 is an essential document for taxpayers who need representation before the IRS. By understanding the purpose, types of representatives, authorization period, restrictions, signature requirements, and other important aspects of this form, you can ensure that your tax matters are handled effectively and efficiently. If you have any questions about Form 2848 or other tax-related matters, it is always recommended to consult with a qualified tax resolution/consultation services professional.