IRS identifies errors on power of attorney and representative forms in determination cases

IRS determination specialists have identified errors in completing Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization, submitted with determination letter applications.

For their representative to receive any information requests or a copy of the determination letter, the taxpayer must check the box under the representative’s address on the Form 2848, or box 5a of the Form 8821. If not checked, the determination specialist can only contact the taxpayer and can’t contact the representative to explain any amendments or forms needed to complete the application review process.

An unenrolled return preparer may not be listed on a Form 2848 for use with the Employee Plans Determination program. The title of the person signing Form 2848 for the taxpayer must be listed, and this person must have the authority to bind the taxpayer. If the taxpayer signs the form first, the representative must sign the form within 45 days (60 days if the taxpayer is outside of the U.S.). The taxpayer identification number, plan number, and the taxpayer’s name and address must be included for the forms to be valid.

If the taxpayer or representative’s contact information changes during the pending determination letter application, an updated Form 2848 should be sent (including a cover letter with explanation and the application document locator number, if available) to:

• Internal Revenue Service
• P.O. Box 12192
• Covington, KY 41012-0192

Form 8821 authorizes any third party, including an unenrolled return preparer or a registered tax return preparer, to inspect and receive tax information in any IRS office. The IRS makes clear that the form does not grant the ability to represent taxpayers, speak for them or to submit proposed amendments.

Source: IRS Employee Plans News, Issue 2014-5, March 27, 2014.

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