Tax attorneys can represent individuals and business taxpayers before the Internal Revenue Service. What allows tax attorneys to act on behalf of and represent these taxpayers? The answer is, a Power of Attorney, and for tax purposes before the Internal Revenue Service, specifically, Form 2848.
Form 2848 is titled Power of Attorney and Declaration of Representative. Form 2848 must be filed with the Internal Revenue Service for an attorney, certified public accountant or enrolled agent to represent a taxpayer before the Internal Revenue Service. A different form, or another power of attorney will not work.
Form 2848 requests the name of the taxpayer and the taxpayer’s identification number. If the power of attorney was for an individual, the identification number is generally going to be their social security number. If the power of attorney is for a business, the identification number is going to be employer identification number, which is the EIN. Thereafter the address and phone number of the taxpayer is stated and the name, address, CAF number and other contact information of the individual or individuals who are to be representatives is stated.
Under the Matters Section, you will state the type of tax or matter description, form number and periods for which the representative is authorized to act for on behalf of the taxpayer. For example, if a tax attorney was representing an individual on 1040 Individual Income Tax issues for years 2008 and 2010, you would state, “Income, 1040 and 2008 & 2010” in the matters section. If a tax attorney was representing a corporation the type of tax or matter description would likely be Income, employment and unemployment, and the associated form would be 1120, 941 and 940 respectively. If you are sure there is only a single period at issue, than you state only this period on the 2848. However, if you are unsure or feel there may be other issues, it is best to give your representative broader authority and thus maybe you state a number of tax periods, such as 2000-2013 to ensure the authorization will allow your representative to discuss the issues with the IRS.
Certain acts such as signing a tax return must be specifically designated to your power of attorney on the Form 2848 or such power will not be given to your power of attorney. You may also delete or withdrawal certain powers by stating such on the Form 2848.
To execute Form 2848, the taxpayer will sign, print their name and date at the top of page 2. If the taxpayer is a business, the individual signing the power of attorney, must also stated their title within the business. Your representative can be a number of people or professionals, but those most commonly on the power of attorney and with the most general authority to act on your behalf are attorneys, certified public accountants and enrolled agents. Your representative will complete their portion below where you have signed and the power of attorney is ready to be filed with the Internal Revenue Service.
Form 2848 can be filed with the IRS CAF Unit, which is a general unit that then notes the representatives authority for the taxpayer, or you can file the Power of Attorney with a specific individual such as a revenue officer, appeals officer or an offer in compromise examiner. Form 2848 can be mailed or faxed to the Internal Revenue Service.
As a tax attorney, John McGuire has acted as Power of Attorney on behalf of many taxpayers to represent them before the IRS and resolve their tax debts and/or tax issues. If you have a matter before the IRS please contact our law firm to speak with a Denver tax attorney.