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THIRD PARTY AUTHORIZATIONS FOR RESOLVING A TAX ISSUE
There are various methods by which third parties may be granted authority to assist taxpayers in resolving tax issues. This chart identifies products available for addressing taxpayer needs and the means of submitting the authorization.
These products all allow for the exchange of information with the IRS for purposes of resolving a tax issue, although the power of attorney is the only product that allows the third party to represent the taxpayer before the IRS.
(1) Features (a) Power of Attorney (POA) (b) (c) (d) Tax Information Authorization (TIA) (e) (f) Limited Tax Information Authorization
(2) Purpose (a) Allows third party to repre-
sent taxpayer before the IRS (b) (c) (d) (f) Allows a third party to receive or inspect written and/or oral tax account information, subject to product limitations
(a) Form 2848, Power of (d) Third Party Designee or (e) Oral Disclosure Con-
Attorney and Declaration of (b) Form 8821, Tax (c) Oral Tax Information Authorization Checkbox Authorization is sent granted by taxpayer
(3) How is authority Representative, Form 706, Information Authorization, granted by taxpayer calling granted directly on tax return calling 1-800-829-1040, (f) Form 8655, Reporting
granted US Estate Tax Return, or or written or electronic 1-800-829-1040 for Individuals or (Forms in 1040 and 94X BMF Number Agent Authorization
written or electronic equivalent 1-800-829-4933 for Business Entities series, Forms 720, 1041, 1-800-829-4933, providing
equivalent 1120, 2290 and CT-1 the name of the designee
for specific notice issue
(a) Attorneys, CPAs, enrolled (f) Companies (Reporting
agents/actuaries, immediate (b) Any individual or a (d) Any individual or a
(4) Who can family, full-time employees, business, e.g. legal, (c) Any individual or a business, e.g. legal, business, e.g. legal, Agents, batch and bulk
filers) approved under
exercise this general partners, officer, accounting, tax preparation accounting, tax preparation firm. accounting, tax preparation (e) Any individual Revenue Procedure
unenrolled return preparer firm. Authority extends to Authority extends to employees of firm. Authority extends to
authority (limited practice) or registered employees of a business a business appointee employees of a business 2007-38 and 96-18.
tax return preparer (limited appointee appointee Authority extends to
practice) and certain others employees of agent
(5) Entitled to (f) Yes, but only on returns
written and oral (a) Yes (b) Yes (c) Yes (d) Yes (e) No. Oral information only. filed and payments made
information by the agent
(c) Yes, if the taxpayer makes known at time
(a) Yes. Taxpayer must check of establishing OTIA that the appointee
(6) Can receive box on Line 2 of Form 2848 (b) Yes. Taxpayer must check should receive copies of notices and (f) Yes. If taxpayer checks
copies of notice and for representative to receive box for appointee to receive communications. Note: Unless the OTIA (d) No (e) No the appropriate blocks
correspondence copies of systems’ generated copies of systems’ generated recorded on the CAF at the taxpayer’s on Form 8655
notices and correspondence. notices and correspondence. request, an appointee established through
an OTIA will not receive copies of systems’
generated notices and communications.
(a) CAF receipts are processed (b) CAF receipts are processed
first in first out (FIFO) within first in first out (FIFO) within (c) Submitted telephonically and recorded (d) Up to 3 weeks to record
10 calendar days. 10 calendar days. immediately on tax module. If OTIA is
(7) Submission and Submissions processed Submissions processed to be recorded on the CAF at the a designation made on an (e) Submitted telephonically (f) Submitted by mail or fax.
processing time through and accepted by through and accepted by taxpayer’s request, the OTIA is e-filed tax return on the tax and recorded immediately Processing time is 10 to
e-services Disclosure e-services Disclosure processed first in first out (FIFO) within module. Processing time is on tax module. 30 days.
Authorization are recognized Authorization are recognized ten calendar days. 4-6 for paper returns.
by the CAF immediately. by the CAF immediately.
(d) Recorded on tax module
(8) Where is record (a) Recorded on CAF. (b) Recorded on CAF.Available (c) Recorded on CAF. Available on Available on Master File (e) Recorded on tax module (f) Recorded on Reporting
maintained and Availableon Master File on Master File and IDRS Master File and IDRS CFINK IDRS TXMOD/IMFOLR and Available on Master File Agents File (RAF)
how is it retrieved? and IDRS CFINK CFINK BMFOLR IDRS TXMOD Available on Master
File IDRS RFINK
(a) No. If CAF # not already (b) No. If CAF # not already
(9) Must have established, one will be established, one will be (c) No. If CAF # not already established, (d) No. Must have shared (e) No. Only name of
CAF/RAF number issued with first recorded issued with first recorded one will be issued with first recorded secret PIN, recorded authorized individual (f) No. Reported on RAF
submission submission submission directly on account recorded directly under RA’s EIN.
on account
(a) Taxpayer revokes or (b) Taxpayer revokes or (d) Checkbox authority will (f) Taxpayer revokes or agent
representative withdraws.
(10) Expiration of New POA supersedes appointee withdraws. New (c) Taxpayer revokes or appointee expire one year from the due (e) Authority coincides with withdraws. New Form 8655
existing POA unless TIA supersedes existing TIA withdraws. New TIA supersedes date of the return regardless the resolution of the specific may coexist with existing
authority otherwise specified on Form unless otherwise specified on existing TIA unless otherwise specified. of any extension dates. notice issue from which the Form 8655 but only for non-
2848, Line 6. May co-exist Form 8821, Line 6. May co- May co-exist with a POA Checkbox authority may authorization arose. May overlapping periods covered
with a TIA exist with a POA co-exist with a POA co-exist with a POA by authorization. May co-
exist with a POA or TIA
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