When you are authorizing an individual to receive confidential tax information or authorizing them to act on your behalf regarding federal tax matters you must make the appropriate filing with IRS. There are two different ways to give authorization to a person. The way you choose depends on the amount of power you are willing to give that person that is going to be helping you. Power of attorney gives them the most power, they can act on your behalf for tax matters. You can limit their power by just authorizing them access to your confidential tax information by filling out and filing the tax information authorization form.
IRS Form 2848 – Power of Attorney and Declaration of Representative
Usually, the two aspects of the title are combined into the same person and the form is referred to simply as a “Power of Attorney Form.
IRS Form 2848 is used to designate an individual to represent the taxpayer before the IRS and to allow the representative to perform all tax acts that the taxpayer would normally take care of. Form 2848 is used to file for IRS power of attorney. This form is used by the taxpayer to authorize an individual to represent them before the IRS. The person authorized in this filing must be an eligible person to represent you. This is a two part form in which the taxpayer information must provide their personal information and the representative that was chosen must provide their name and CAF number, which is a number that is assigned by the IRS in order to identify representatives. The second part of this form is the declaration of representative. In this part the chosen representative must sign, date and enter the designation under which they are allowed to practice before the IRS.
A taxpayer can limit which duties their representative can perform by attaching a statement to the power of attorney explaining exactly what their duties will be. Without limitations, the representative will be able to sign consents extending the time to assess tax, record the interview, sign waivers agreeing to tax adjustments, sign closing agreements, and also receive refund checks.
Using Form 2848 gives the representative access to all tax years and to act on all tax matters listed on the form. If the taxpayer only wants the representative to have access to their current year’s tax information, they should fill out the “third party designee” section on their income tax return.
NOTE: The authorized representative(s) must sign and date the bottom of page 2 or the Power of Attorney will be returned. Form 2848 cannot be filed electronically with the tax return. Joint return filers must complete and submit seperate Forms 2848.
Tax Form 8821 – Tax Information Authorization
IRS form 8821 is used to authorize any individual, corporation, firm, organization, or partnership to inspect and/or receive your private tax information. They can receive information from any IRS office for the tax information and years that are listed when the form is completed. When this form is completed it gives the appointee limited power over your financial information. Completing this form will not allow them to represent you to the IRS, execute waives, sign documents or closing agreements. If you want them to have the power to represent you then you must file for a power of attorney with form 2848 listed below.
Form 2848 Filing Instructions
You must file form 2848 if you would like your attorney, family member or accountant to be able to act on your behalf for tax matters. You may file it electronically or by mail. The appropriate mailing addresses are contained in the form’s instructions.
Although the process of filing for IRS power of attorney is rather simple, the steps that you take when completing form 2848 irs are very important.
Individuals need to include their name, social security number, or employer identification number, as well as their address. For a join return, your spouse must also include his/her name, social security number, and address if different from yours.
Corporations must include name, employer identification number, and address of the business.
Line 2: Representative
On this line you will enter your representatives full name. Only individual persons can be named as a representative, not an entire company. It is important to use the same full name on all correspondence to avoid confusion and mistakes. You have the ability to name up to three representatives. If for some reason you need to add more, indicate this on line two and attach an additional Form 2848 with this information.
You must also enter the nine digit CAF for each named representative. If a CAF number has not been assigned to your representative write â€œnoneâ€ and the IRS will issue one. Check the box to indicate if telephone number, fax number, or address has changed since the CAF was assigned.
Line 3: Tax Matters
This line is for the type of tax, form number, and year(s). For example, you may include Income Tax, 1040, 2008â€ or something similar. It is important to be specific on this line. The IRS does not accept general references such as all types of tax or all years.
Line 4: Specific Uses Not Recorded on CAF
Check the box listed on Line 4 if the IRS power of attorney is for a use that will not be named on the CAF. An IRS power of attorney will not be recorded if it does not relate to a specific period.
Line 5: Acts Authorized
This line is used to modify the acts that the named representatives can perform on your behalf. Describe additions or deletions in detail. For example: substituting representatives, disclosure of returns to a third party, and authority to sign your return.
Line 6: Receipt of Refund Checks
If you want your representative to be able to receive refund checks, but not endorse them, you must make this clear on line 6 by initialing and filling in that personâ€™s name.
Line 7: Notices and Communications
All notices and communication will be sent to you and the representative listed. There are two boxes that you can check:
Box A: The original will be forwarded to you, and subsequent copies to the first two listed representatives.
Copy B: The original will be forwarded to you, and no copies will be sent to any representatives.
Line 8: Retention/Revocation of Prior Power(s) of Attorney
If there is an existing IRS power of attorney that you do not want to revoke, check the box provided on this line and attach a copy of the power(s) of attorney.
Line 9: Signature of Taxpayers
Individuals must sign and date the IRS power of attorney. If a joint return is filed and both spouses are involved, both must sign.
IRS power of attorney for a corporation requires a signature from an organization officer with authority to bind the taxpayer.
Part II: Declaration of Representative
The second part of the IRS power of attorney is where your representative signs and dates, while also entering his designation â€“ such as an irs tax attorney, certified public accountant, enrolled agent, officer, family member, etc.
With this information you should have a better understanding of how to file for IRS power of attorney. Most of the time the professional you choose to represent you will help you fill out this form properly, if you need representation, we can help, simply fill out the form in the upper right.
Where to fax form 2848?
mail or fax Form 2848 directly to the IRS address according to the Where To File Chart below.
Where To File Chart
IF you live in…
THEN use this address…
Alabama, Arkansas, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, or West Virginia
P.O. Box 268, Stop 8423
Alaska, Arizona, California, Colorado, Hawaii, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wisconsin, or Wyoming
Ogden, UT 84404
All APO and FPO addresses, American Samoa, nonpermanent residents of Guam or the U.S. Virgin Islands**, Puerto Rico (or if excluding income under Internal Revenue Code section 933), a foreign country: U.S. citizens and those filing Form 2555, 2555-EZ, or 4563.
**Permanent residents of Guam should use Department of Taxation, Government of Guam, P.O. Box 23607, GMF, GU 96921; permanent residents of the U.S. Virgin Islands should use V.I. Bureau of Internal Revenue, 6115 Estate Smith Bay, Suite 225, St. Thomas, V.I. 00802.
mailed to the IRS with Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-fileReturn. This process uses a Paper Document Indicator (PDI), to alert the IRS that you will mail a supporting document after the e-filed return is accepted.
Either way, fill out screen 2848 to produce the 2848. Print and complete it. Note that when you prepare Form 2848 in a joint return, the software produces one for each spouse because the IRS now requires it.
To attach it to the return for e-filing, use the PDF screen to identify the document and then scan and attach it . If you attach the document, do not generate Form 8453 for it, or the IRS will look for a mailed copy.
To mail it with Form 8453 (PDI), generate the 8453 by indicating the 2848 as a Form 8453 attachment. Open the MISC screen (on the Miscellaneous tab). On the bottom left, select the option Return signed by Power of Attorney. Enter the name in the Power of Attorney name field.
Print the completed Form 8453 and mail with the completed Form 2848 to the IRS within 3 business days after receiving acknowledgement that the IRS has accepted the electronically filed tax return.