What is Form 2848: Power of Attorney and Declaration of Representative?
Form 2848: Power of Attorney and Declaration of Representative is a document used by the Internal Revenue Service (IRS) to authorize an individual or organization to represent a taxpayer before the IRS, such as during an audit.
Federal law ensures the confidentiality of the information you provide on your tax return. Thus, you need to submit Form 2848 to the IRS to permit another person to receive and inspect your tax information and act on your behalf.
Key Takeaways
- Representation Authorization: Form 2848 allows individuals or organizations to represent taxpayers before the IRS.
- Who Can Represent: Authorized representatives include attorneys, CPAs, and enrolled agents.
- Liability: Signing Form 2848 doesn’t absolve the taxpayer of any tax obligations.
Unlocking the Purpose of Form 2848: Power of Attorney and Declaration of Representative
Form 2848 is distinct from a typical power of attorney (POA) as it does not remove any tax liabilities. Here’s what it empowers your agent to do on your behalf:
- Receive confidential tax information
- Sign agreements with the IRS concerning taxes specified on Form 2848
- Request additional time for tax assessments or adjustments
- Sign a tax return in specific situations, such as if you are incapacitated or outside the United States for at least 60 continuous days before tax filing
Certain actions, however, remain beyond your agent’s authority with Form 2848:
- They cannot endorse or negotiate refund checks or request that a refund be deposited into their account.
- They are not permitted to appoint another agent unless you’ve provided explicit authorization.
Revoking Authority
You can revoke the authorization of a previously designated representative by writing “REVOKE” on a new Form 2848, signing it, and sending it to the IRS along with a copy of the original Form 2848.
Eligibility: Who Can File Form 2848: Power of Attorney and Declaration of Representative?
Any taxpayer wishing to be represented by a power of attorney when dealing with the IRS may file Form 2848. Individuals or organizations authorized to act as representatives include:
- Attorneys or law firms
- CPAs
- Enrolled agents
Family members or fiduciaries can also act as third-party representatives but with limited capabilities. Their actions are restricted to consultations with IRS customer-service agents and cannot include signing documents or managing financial actions.
Filing Form 2848: Power of Attorney and Declaration of Representative
To effectively authorize a representative using Form 2848, you need to provide precise information. Here are key steps to ensure accuracy:
- Description of Matter: Specify the type of tax matter, e.g., income taxes.
- Tax Form Number: Identify the exact form, such as Form 1040. Vague expressions like “all forms” are inadequate.
- Applicability Year/Period: Clearly state the specific tax year or period, e.g., 2020. General statements like “all years” are not acceptable.
Also, include specific details about your agent or representative, such as:
- Name, address, telephone number, and fax number
- Preparer Tax Identification Number (PTIN), which must be renewed annually by representatives like CPAs or attorneys
- Centralized Authorization File (CAF) number used by the IRS to identify the representative
Both you and your representative must sign the form. If married and filing jointly, each spouse must submit a separate Form 2848, even if selecting the same representative.
Fully filled Form 2848 is available on the IRS website.
Differentiating Between Form 2848 and Form 8821
While Form 2848 grants a power of attorney the authority to represent you before the IRS, Form 8821: Tax Information Authorization permits someone merely to receive and inspect your confidential information. This is useful in situations like applying for a mortgage, where tax information needs to be shared with your lender without granting them representation rights.
Related Terms: Form 8821, IRS Power of Attorney, Third-Party Representatives, Confidential Tax Information.
References
- Internal Revenue Service. “Instructions for Form 2848, Power of Attorney and Declaration of Representative”, Page 1.
- Internal Revenue Service. “About Form 2848, Power of Attorney and Declaration of Representative”.
- Internal Revenue Service. “Instructions for Form 2848, Power of Attorney and Declaration of Representative”, Pages 1-2, 5.
- Internal Revenue Service. “Instructions for Form 2848, Power of Attorney and Declaration of Representative”, Page 5.
- Internal Revenue Service. “Instructions for Form 2848, Power of Attorney and Declaration of Representative”, Page 2.
- Internal Revenue Service. “Instructions for Form 2848, Power of Attorney and Declaration of Representative”, Pages 1, 6.
- Internal Revenue Service. “IRS urges tax professionals to renew PTINs now for 2020”.
- Internal Revenue Service. “Form 2848”.
- Internal Revenue Service. “About Form 8821, Tax Information Authorization”.
