Understanding IRS Third-Party Authorizations

When assisting you with your tax matters, we may need your authorization to communicate with the IRS, access your tax information, or represent you on your behalf. The IRS offers several types of third-party authorizations, each providing different levels of access and authority.

Understanding these options will help you determine which authorization is most appropriate for the services we provide and how we can best assist you with your tax matters.

Types of IRS Third-Party Authorizations

1. Power of Attorney (Form 2848)

A Power of Attorney (POA) allows an eligible tax professional, such as a CPA, attorney, or enrolled agent, to represent you before the IRS.

With your authorization, your representative may:

• Communicate and negotiate with the IRS on your behalf.

• Respond to IRS inquiries and assist in resolving tax matters.

• Access confidential tax information for the tax matters and periods you authorize.

• Receive copies of IRS notices and correspondence.

• Sign certain documents on your behalf, where permitted.

  
  

This authorization is generally recommended when you need professional representation for IRS inquiries, audits, or other tax matters.

2. Tax Information Authorization (Form 8821)

Form 8821 allows a designated individual or organization to access and receive your confidential tax information for specific tax matters and periods.

Unlike a Power of Attorney, this authorization does not permit the designated party to represent you or negotiate with the IRS on your behalf.

This option is useful when you would like your accountant or another trusted party to obtain tax records, review account information, or monitor IRS correspondence.

3. Third-Party Designee

You may designate someone on your tax return to discuss that specific return with the IRS.

This authorization generally allows the designated person to answer questions about the return, provide missing information, and discuss certain processing or payment-related matters.

It is limited to the specific tax return and tax year and does not provide broader representation rights.

4. Oral Disclosure Authorization

If you are speaking with the IRS by phone or attending a meeting, you may authorize the IRS to share information with another person participating in the conversation.

This is helpful when you would like your accountant, family member, or another trusted individual to assist during a specific IRS discussion.

The authorization is generally limited to that conversation unless otherwise specified.

How Long Do These Authorizations Remain Valid?

Each authorization has different rules regarding its duration:

• Power of Attorney (Form 2848): Generally remains effective until revoked, withdrawn, or otherwise terminated.

• Tax Information Authorization (Form 8821): Generally remains effective until revoked, withdrawn, or otherwise terminated.

• Third-Party Designee: Generally expires one year after the original due date of the tax return, excluding extensions.

• Oral Disclosure: Generally ends when the authorized conversation concludes, unless otherwise specified.

  
  

Important Note: You may revoke a third-party authorization at any time.

How We Can Assist

As your tax firm, we can serve as your authorized third party to communicate with the IRS and assist with your federal tax matters.

Depending on the type of authorization you provide, we may be able to access your tax information, respond to IRS inquiries, and assist in resolving tax-related issues on your behalf.

Our team will help determine the appropriate authorization for your needs and guide you through the process of completing the necessary forms.

If you have any questions about IRS third-party authorizations or how we can assist you, please don't hesitate to contact us.

For additional information, visit the IRS website on Power of Attorney and Other Authorizations.