You might have heard of a power of attorney. You might even have one. However, certain entities like the Internal Revenue Service (IRS) or the Social Security Administration (SSA) will not simply talk to anyone about your confidential account information and will require you to submit specific information about what you are allowing to be disclosed and to whom it should be disclosed. This is where IRS Form 2848 comes in.
Form 2848 provides specific authorization for the IRS to discuss your tax situation with the person you name on the form. Learn more about Form 2848 and review our detailed Form 2848 instructions to get started with your own IRS Power of Attorney.
What Is Form 2848?
Form 2848 is a special IRS tax form that authorizes someone else to represent you before the IRS. You will need to complete Form 2848 before an IRS agent will speak to someone else regarding your tax matter. Form 2848 remains in effect for seven years unless you revoke it before that. To complete the revocation, you can scrawl “revoke” at the top of the page, sign, date, and mail the form to the address listed in the Where to File chart on Form 2848.
What Is a Power of Attorney?
A power of attorney (POA) is an estate planning document that lets you, the principal, give authority to another person, your agent, to act on your behalf regarding your financial affairs. You can make the powers as broad or as limited as you like.
State law varies on the types of powers that are designated by a general power of attorney, though you can usually change this in your power of attorney document. Common powers include:
- Being able to communicate with your creditors and financial institutions
- The right to add, cancel, or change insurance policies
- The power to manage your business
- The right to sell your real property and/or personal property
- The right to access your bank account, make deposits, and withdraw funds
- The power to make gifts
In some jurisdictions, the agent can make changes to the beneficiaries in the principal’s trust or otherwise alter terms of the trust.
You may also give your agent the right to file tax returns and handle tax affairs on your behalf.
Why Do I Need Form 2848 If I Have a Power of Attorney?
Even if you have a valid power of attorney, entities may require you to complete specific documentation with them. This gives your agent access, control, and authorization to the account.
For example, your bank may require you to use a specific form to effectuate a power of attorney with it. The SSA uses the representative payee program. Likewise, the IRS uses its specific declaration of representative form to name your agent for the purpose of interacting with the Internal Revenue Service and its agents.
Specifically, Form 2848 gives the authorized representative to inspect and receive confidential tax information, to sign agreements, consents, waivers, and other documents, and perform all acts that the taxpayer can perform regarding the tax matters described in the power of attorney.
Possible Uses for Form 2848
Form 2848 lets you authorize another person, of your choice, to represent your interests when communicating with the Internal Revenue Service. The IRS Power of Attorney Form authorizes the IRS to allow your agent to handle your tax matters.
Some possible uses for Form 2848 include:
- Negotiate a payment plan on your behalf
- Provide your tax preparer with full access to your IRS records
- Prepare for an audit
- Access a prior income tax return or tax transcript
- Receive IRS notices on your behalf
- Dispute tax liability stemming from an individual income tax return
- Respond to IRS notices on your behalf
- Sign tax forms and documents on your behalf
- Access tax transcripts to correct errors or compile information
- Appeal a decision made by the IRS
- Appoint a trusted person to act on your behalf if you have a medical condition affecting your ability to handle tax matters yourself
Who Can You Authorize as Your IRS Power of Attorney?
Your IRS power of attorney can include:
- An immediate family member
- Your agent in your power of attorney
- Your lawyer
- An enrolled agent
- An enrolled actuary
- A tax preparer
- A corporate officer or full-time employee of your business
- A certified public accountant (CPA)
- A preparer for a low income tax clinic (LITC)
- An unenrolled return preparer
- An enrolled retirement plan agent
You can find more information about who can practice before the Internal Revenue Service by reviewing Treasury Department Circular 230, Regulations Governing Practice before the Internal Revenue Service and Pub. 216, Conference and Practice Requirements.
Difference Between Form 2848 and Form 8821
Form 2848 Power of Attorney and Declaration of Representative allows a taxpayer to name a representative to represent their interests in tax matters. The representative acts on behalf of the taxpayer and can represent them in a case in dispute with the IRS.
IRS Form 8821 consents to have an authorized individual receive confidential tax information. However, this person does not have the authority to represent you. Therefore, if you need someone just to see your individual income tax information, Form 8821 would suffice. Form 2848 allows you to name an authorized individual to access your confidential tax information and represent you.
Form 2848 Instructions
Here are detailed Form 2848 instructions:
- Complete all blank fields. Write down the taxpayer information, including their name, the taxpayer identification number or Social Security Number, the taxpayer’s phone number and address, the name of the authorized representative, the representative’s CAF number, preparer taxpayer identification number (PTIN), the representative’s phone number and fax number, description of matter, applicable tax form number, the years for which you are authorizing the representation, and date.
- Make decisions about the scope of the representation. Check the box on Line 2 if you want your representative to be able to receive notices and communications. Check the box on Line 4 if the representation is for any specific use not recorded on the CAF. Indicate other acts you want your representative to be able to complete on your behalf on Line 5a. You can check the boxes or include additional information on the lines provided. List any specific acts you do not want your representative to do on your behalf on Line 5b.
- Attach the power of attorney. If you want a prior power of attorney to remain in effect, you can check the box on line 6 and attach your power of attorney to the document.
- Sign and date the document. The signature of taxpayer must be inserted on Line 7, print your name, and date it. You do not need a notary or witness. If you are completing the form online, you can use electronic signatures.
- Complete information about your representative. Fill out the designation of your representative (such as your lawyer or CPA). List the licensing jurisdiction or licensing authority. Provide the representative’s bar, license, certification, registration, or enrollment number. Have the representative sign and date the form.
Here is a detailed explanation of the information you will provide on the form for each form line:
| Line | Information to Include |
| 1 | Taxpayer name and address, daytime phone number, taxpayer identification number or employer identification number, plan number, if applicable |
| 2 | Name and address of representative, Centralized Authorization File (CAF) number, PTIN, fax number, telephone number. You can list up to three different representatives. |
| 3 | Specific tax matters you are authorizing your representative to handle, tax form numbers that apply to those tax matters, and applicable tax years or periods, including the current year |
| 4 | Any specific use not recorded on the CAF |
| 5a | Additional acts you are authorizing your representative to complete with boxed to check and lines to add in your own words |
| 5b | Any specific acts you do not want your representative to do on your behalf |
| 6 | Retention or revocation of prior power of attorney. Only check the box if you want to keep an old power of attorney in effect. |
| 7 | Printed name, signature, and date |
| Part II | Information about your representative, including their designation, licensing jurisdiction, and identifying number |
How to File Form 2848 with the IRS
There are a few different ways you can file Form 2848, including:
- Online – You can submit your form online on the irs.gov website. This requires having a Secure Access account.
- Fax – You can fax Form 2848 to the IRA tax number listed in the where to file chart.
- Mail – Alternatively, you could mail the document, based on the where to file chart.
Importance of Updating Your Estate Plan
A power of attorney is an important estate planning document. However, for this document to be most effective, it’s essential to ensure your appointed agent will have the necessary authorization to fulfill your wishes.
When you file Form 2848, you can proactively provide this authorization. If you do not currently have Form 2848 in place, you can take action today to submit this essential document to the IRS.
By periodically reviewing your estate plan, you can further ensure you have the estate planning documents you need in order. You can also use our site to help create your documents.
Takeaway
Form 2848 is required for someone to act on your behalf and represent you in tax matters before the IRS. Use the instructions above to complete the form for your specific purpose.