IRS Form 2848 Explained
Table of Contents
Key Takeaways:
- IRS Form 2848, Power of Attorney and Declaration of Representative, is a tax form used to appoint a power of attorney who can legally act on the taxpayer’s behalf for all matters related to the IRS.
- A power of attorney is authorized to sign tax forms, receive a copy of IRS letters, respond to IRS notices, negotiate installment agreement payment plans, appeal IRS disputes, and access IRS tax transcripts, all on behalf of the taxpayer.
- Taxpayers may benefit from appointing a power of attorney if they have unpaid back taxes, are experiencing an IRS audit, or have a serious medical condition that interferes with their ability to communicate with the IRS.
What Is IRS Form 2848?
IRS Form 2848, Power of Attorney and Declaration of Representative, is a tax form used by taxpayers to authorize another individual to represent them before the IRS.
The principal purpose of appointing a power of attorney is so that they can act on the taxpayer’s behalf for all matters related to IRS communication and taxes, including signing forms, accessing information, and negotiations.
What Can A Power of Attorney Do?
Upon granting someone to act as your power of attorney using IRS Form 2848, the individual will gain the legal right to make financial or medical decisions on your behalf. Powers of attorney can deal with the IRS on your behalf in the following situations:
- Signing a form
- Receiving copies of IRS letters
- Responding to IRS notices
- Negotiating installment agreement payment plans
- Appealing IRS disputes
- Accessing IRS transcripts from your tax account
Who Can Be A Power of Attorney?
While it is a simple process to appoint an immediate family member as a power of attorney, people who are not related to the taxpayer must meet certain qualifications to be able to take on this responsibility. Most of the time, IRS Form 2848 is used to authorize a licensed tax professional to become a power of attorney, such as a:
- Tax attorney or tax lawyer
- Certified public accountant (CPA)
- IRS enrolled agent
- Enrolled actuary
- Enrolled retirement plan agents (when discussing retirement plan tax matters)
- Unenrolled tax return preparer (when discussing a tax return they prepared)
- Full-time employees or corporate officers (when discussing business tax matters)
- Representatives in a qualified tax clinic program (such as a Student Tax Clinic Program or Low Income Taxpayer Clinic)
What Can't A Power Of Attorney Do?
There are some actions that a power of attorney cannot perform on behalf of the taxpayer, including:
- Endorse or negotiate government checks issued by the government related to federal tax liability
- Add or substitute another representative
- Execute a request for disclosure of tax return information to a third party
- Access IRS records using an Intermediate Service Provider
When To Hire A Power of Attorney
Some of the situations where it might be beneficial for individuals to appoint a power of attorney to negotiate with a tax authority on their behalf include:
- During an IRS audit
- When they have significant unpaid back taxes or tax debt
- When they have a serious medical condition that interferes with their ability to communicate with the IRS
How To File IRS Form 2848
The first step to filing IRS Form 2848 is to enter the tax information into the tax form, taking note of the details required to complete each section and page.
Depending on the situation for which a taxpayer is appointing a third-party power of attorney, they may have options about the method they choose to submit the tax form. This choice depends on whether they checked the box on line 4 of the tax form indicating that the specific use of the power of attorney is not recorded on the Centralized Authorization File (CAF).
Those who check the box on line 4 of IRS Form 2848 must mail or fax their tax form to the specific IRS office that is handling the matter.
Taxpayers who did not check the box on line 4 of IRS Form 2848 have the choice of submitting their tax form online, by fax, or by mail. The location where they must fax or mail their form is dependent on their state, and the IRS addresses and fax numbers are listed on their website.
If you need help with following the instructions for IRS Form 2848 or with general tax filing, the tax experts at Ideal Tax are here to help. Set up a free consultation today to get started on your journey to optimizing your taxes today.
Luis serves as the Director of Operations for Ideal Tax, overseeing a multifaceted team including case management, tax professionals, document specialists, customer support, training, and development.
