09 Sep Can I have another Party Talk to the IRS on my Behalf?
I’d make this less “IRS publication” and more like something you would send to a client- practical, and focused particularly on why a Form 2848 matters when you are representing someone before the IRS.
The IRS allows you to authorize another person to receive information or deal with the IRS on your behalf. However, not all authorizations are the same, and it is important to understandwhat authority you are actually giving someone.
Power of Attorney — Form 2848
If you want a qualified tax professional to actually represent you before the IRS, you generally need to sign Form 2848, Power of Attorney and Declaration of Representative. This is the authorization we typically use when representing a client with an IRS problem.
A properly completed Form 2848 allows an authorized representative, such as a CPA, attorney or Enrolled Agent, to deal directly with the IRS regarding the tax matters and years listed on the form. Depending on the authorization, your representative can:
- Speak with the IRS on your behalf
- Obtain IRS transcripts and account information
- Discuss and explain the facts of your case
- Address how the tax law applies to your situation
- Negotiate with the IRS regarding collection or other tax matters
- Receive copies of certain IRS notices and correspondence
In other words, a Power of Attorney allows your tax professional to represent you, rather than simply obtain information about your account.
Tax Information Authorization — Form 8821
Form 8821 is different. It allows another person to receive and review your confidential tax information, but it does
not give that person the authority to represent you before the IRS.
This can be useful when someone needs access to IRS information but does not need to advocate or negotiate on your behalf
Third-Party Designee
You can also designate someone on a particular tax return to discuss that return with the IRS. This authority is much more limited.
It generally applies only to the specific return and tax year involved and normally expires 1 year after the return’s due date.
Oral Authorization
If you are on the telephone or in a meeting with the IRS, you can authorize the IRS to discuss a particular tax matter with another person who is participating in the conversation.
This is generally a temporary authorization. Unless otherwise specified, it ends when that conversation ends.
You Remain in Control
You can revoke an authorization. A Form 2848 Power of Attorney generally remains in effect until it is revoked by the taxpayer, withdrawn by the representative, or otherwise terminated under IRS procedures.
The important distinction is simple:
- Form 8821 allows someone to obtain information.
- Form 2848 allows a qualified professional to represent you.
If you have an IRS collection or tax problem, having the proper authorization in place allows your representative to communicate directly with the IRS and work toward resolving the matter on your behalf.