The Internal Revenue Service (IRS) Form 2848 is a document used when an individual or an entity is looking to designate someone else to file taxes on their behalf. The IRS power of attorney form 2848 allows a tax attorney or an accountant to represent the individual/entity formally and to submit taxes to the IRS on their behalf. The form should be filed with the relevant tax entity by the individual/entity being represented either via certified mail or E-file. The representative may complete the form; however, it must be signed by the individual/entity issuing their authority to the representative being named.
This is a special form that both the taxpayers and the non-taxpayers use to report financial information to the United States Internal Revenue Service.
The form captures and showcases information about the income of the entity concerned and the taxes payable to the federal government. It also discloses other pieces of information that may be stipulated by the Internal Revenue Code (IRC). The form comes in around 800 schedules and formats.
Usage of IRS Form 2848
The IRS Form 2848 can be used for the following reasons:
- Filing Tax Returns- As noted above, this form is extensively used when filing tax returns. This, in fact, is its primary purpose. It captures and displays to the Internal Revenue Service all the pieces of information that may be needful for that end. These include the income levels and the tax payable.
- Claim Tax Refunds- While claiming tax refunds, this form yet again comes in handy. It will aid you in asking for the same from the Internal Revenue Service chiefly because it contains all the up-to-date information on the same.
- Settling Disputes-It is not uncommon for disputes to arise when filing tax returns or handling other taxations issues. This form can help to quell such disputes. That is because it contains fields which when properly filled out, will lay bare all the facts relevant to the case.
Differences between IRS Form 8821 and 2848
Though extensively used by taxpayers in the United States of America, these two forms bear some significant differences. Below are some of the major points of divergence between these two forms:
- Purpose- For 8821 is issued out to a representative by a taxpayer purely to gain access to his private and confidential tax information. Form 2848, on the other hand, is used to give a representative the power to file tax returns and handle other tax-related issues on behalf of the client.
- Qualifications- To be able to handle the powers conferred by Form 2848, one has to be a practicing attorney, certified public accountant, or an enrolled agent. This means the representative needs to possess some above-average skill and expertise.
The case is however completely different from Form 8821. One need not possess any technical skill or expertise. He only needs to be someone who is trusted by the firm concerned that is it!
- Scope- As explained above, Form 2848 empowers the representative to handle all taxations issues on behalf of the client. These include but are not limited to filing tax returns, receiving refunds, signing agreements, negotiating adjustments, and attending meetings if need be.
The one for Form 8821 is however limited only to access privileged taxation information of the client concerned. This could take the form of scrutinizing past tax records, ascertaining any errors, and anticipating tax levels.
- Applicability- Generally speaking, all firms and entities, at one point or another, have to use Form 2848. This is due to the fact that they might never have the time to those chores on their own. As for Form 8821, only a select few will find it needful for their use at any given time.
Filing the IRS Power of Attorney Form
There are several things that one must know when filing form 2848, such as where to file, exceptions when filing, and what they need to do after filing the form, as explained below:
Where to file
After completing the IRS Power of Attorney Form 2848, it should be mailed via certified mail to the relevant regional IRS office. Three national centers receive IRS power of attorney form 2848, namely Tennessee, Pennsylvania, and Utah. Before mailing, however, one should first consult the filing directions of the IRS website to determine where they should send the form.
Who can file Form 2848
The only person who is eligible to file this Form 2848 is the one who is expressly authorized by the individual or entity to do the same. By law, the person selected has to possess above-average accounting or taxation skills. These may be a practicing attorney, certified public accountant, or an enrolled agent.
There are a few exceptions when filing the IRS Power of Attorney Form 2848. For instance, if one is looking to grant the Power of Attorney for a single matter rather than giving a general authorization for a return year or longer- referred to as a “Specific-use power of attorney,” the authorization form should be mailed to the IRS office that handles the specific issue.
Authorities assigned by the form
The IRS Power of Attorney Form 2848 form authorized an individual to represent an entity/individual in a specific class of tax matter. The IRS, however, limits individuals who can be permitted to take up this role and the powers that can be granted to them.
Since not everyone can be permitted to take up the role, to set the distinction between those allowed and those not allowed, the IRS sets a restriction to only those deemed eligible, referred to as “eligible to practice before the IRS.” This implies that only those with appropriate formal credentials such as tax accountants, lawyers, actuaries, and other selected professionals including, family members of the primary filer and those with relevant tax-preparation training.
Once the representative is granted the Power of Attorney, they can act on behalf of the individual/entity in all IRS dealings. The IRS Power of Attorney Form 2848 requires that the representative be granted a specific time limit to view tax records, prepare and sign relevant agreements, consent, and waiver and administer any other administrative matters- for the specified period, usually one year.
The primary filer, i.e., the individual/entity being represented, can choose which powers to give their representative. If need be, the representative may be empowered to assign others as representatives. The representative may also be granted access to future tax records up to three years beyond the current filing year. Form 2848, however, cannot be used to provide blanket authorization to the representative, and the IRS does not allow for unlimited access or unregulated powers.
Tip: Although the IRS keeps a record of most power-of-attorney cases in their central CAF database, it is recommended that the appointed representative retains a copy of the IRS form 2848 with them when they are dealing with the IRS.
How to Revoke Form 2848
The IRS Form can be revoked as:
- Download and fill the form- Download the form from the official Internal Revenue Service portal:
https://www.irs.gov/pub/irs-access/f2848_accessible.pdf
Fill the form chiefly by indicating those representatives whose authority you wish revoked. You are required to furnish all pertinent details like the periods covered, names and addresses, and the matters concerned.
Then, write the term ‘REVOKE’ at the top of page 1 of the form and finish off by appending your signature and date underneath the form.
- Return the form to the Internal Revenue Service- After filling the form, you now have to fax or mail it back to the Internal Revenue Services. Indicate clearly the ‘Where to File Chart’ or the specific Internal Revenue Service office that handles such matters in your jurisdiction.
IRS Form 2848
References:
- https://www.thetaxadviser.com/issues/2015/jul/tpp-july2015-02.html
- https://www.irs.gov/forms-pubs/about-form-2848
- https://www.irs.gov/instructions/i2848
Frequently Asked Questions (FAQs)
It depends on the exact nature of the form. In case it is original, it DOES NOT have to be notarized. If however, the form is a copy of the original, you have to notarize it to make it official and legally acceptable.
There are several ways of changing the address in the IRS form, including; visiting a local IRS office, calling 1-800-829-104, filing form 8822, using the new address on the next tax return, or by mailing a written statement to the location, one would normally file their tax returns.
IRS form 8821 (Tax information Authorization) allows the representative access to their client’s information; however, unlike form 2848, it grants less authority, i.e., one cannot represent their client to the IRS.
Final Words
The Principal must use form 2848 when authorizing an individual to represent them before the IRS. The individual authorized must be a person eligible to practice before the IRS. The form should be filed with the relevant tax entity by the individual/entity being represented either via certified mail or E-file.
