Publication 947
Practice Before the IRS and Power of Attorney
(Revised: 4/2002)

Authorizing a Representative

• Attorney-in-fact
• CAF number
• Centralized Authorization File (CAF) System
• Commissioner
• Durable power of attorney
• Enrolled agent
• Fiduciary
• General power of attorney
• Government officer or employee
• Limited power of attorney
• Practitioner
• Recognized representative

You may either represent yourself, or you may grant an individual power of attorney (legal authority) to represent you before the IRS. Your representative must be a person eligible to practice before the IRS. See Who Can Practice Before the IRS, earlier.

What Is a Power of Attorney?

A power of attorney is your written authorization for an individual to act on your behalf in tax matters. If the authorization is not limited, the individual can generally perform all acts that you can perform. The authority granted to an unenrolled preparer cannot exceed that allowed under the special rules of limited practice described in Revenue Procedure 81-38.

Acts performed.   Any representative, other than an unenrolled preparer, can usually perform the following acts.

1. Represent you before any office of the IRS.
2. Record the interview.
3. Sign an offer or a waiver of restriction on assessment or collection of a tax deficiency, or a waiver of notice of disallowance of claim for credit or refund.
4. Sign a consent to extend the statutory time period for assessment or collection of a tax.
5. Sign a closing agreement.
6. Receive, but not endorse or cash, a refund check drawn on the U.S. Treasury. You must specifically initial Form 2848 (see Form Required, later) showing the name of the individual designated to receive the refund check.

Signing your return.   The representative named under a power of attorney is not permitted to sign your personal income tax return unless both of the following are true.

1. The signature is permitted under the Internal Revenue Code and the related regulations (see section 1.6012-1(a)(5) of the Income Tax Regulations).
2. You specifically authorize this in your power of attorney.

For example, the regulation permits a representative to sign your return if you are unable to sign the return for any of the following reasons.

• Disease or injury.
• Continuous absence from the United States (including Puerto Rico) for a period of at least 60 days prior to the date required by law for filing the return.
• Other good cause if specific permission is requested of and granted by the IRS.

When a return is signed by a representative, it must be accompanied by a power of attorney (or copy) authorizing the representative to sign the return. For more information, see the Form 2848 instructions.

Endorsing or cashing your refund check.   If you want your representative to receive a refund check on your behalf, you must specifically authorize this in your power of attorney as discussed earlier under Acts performed. However, if your representative is permitted to practice before the IRS, he or she cannot be authorized to endorse or otherwise cash your check related to income taxes. If you want someone else to endorse or cash that check, follow the rules in Treasury Department Circular No. 21, as amended, 31 CFR part 240. To get a copy of this, select the Code of Federal Regulations under Access to Government Information Products, at www.gpo.gov.

Limitation on substitution or delegation.   The recognized representative can substitute or delegate authority under the power of attorney to another recognized representative only if the act is specifically authorized under the power of attorney.

After a substitution has been made, only the newly recognized representative will be recognized as the taxpayer's representative. If a delegation of power has been made, both the original and the delegated representative will be recognized by the IRS to represent the taxpayer.

Incapacity or incompetency.   A power of attorney is generally terminated if you become incapacitated or incompetent.

The power of attorney can continue, however, in the case of your incapacity or incompetency if you authorize this on the Form 2848, or if your non-IRS durable power of attorney meets all the requirements for acceptance by the IRS. See Non-IRS powers of attorney, later.

When Is a Power of Attorney Required?

Submit a power of attorney when you want to authorize an individual to represent you before the IRS, whether or not the representative performs any of the other acts cited earlier under What Is a Power of Attorney.

A power of attorney is most often required when you want to authorize another individual to perform at least one of the following acts on your behalf.

1. Represent you at a conference with the IRS.
2. Prepare and file a written response to the IRS.

Form Required

Use Form 2848 to appoint a representative to act on your behalf before the IRS. You can file this form only if you want to name a person(s) to represent you and that person is a person recognized to practice before the IRS. Persons recognized to practice before the IRS are listed under Part II, Declaration of Representative, of Form 2848. Your representative must complete that part of the form.

Unenrolled return preparers.   Use Form 2848 to appoint an unenrolled return preparer as your representative.

The authority of the unenrolled preparer is limited as described in Revenue Procedure 81-38. The unenrolled preparer can represent you only before revenue agents and examining officers of the Examination function of the IRS. The representation can only concern your tax liability for the period(s) covered by the return(s) he or she prepared. For more information about the limitations on unenrolled return preparers, see Limited practice under Who Can Practice Before the IRS, earlier.

Non-IRS powers of attorney.   The IRS will accept a non-IRS power of attorney, but a completed transmittal Form 2848 must be attached in order for the power of attorney to be entered on the Centralized Authorization File (CAF) system. For more information, see Processing a non-IRS power of attorney, later.

If you want to use a power of attorney document other than Form 2848, it must contain the following information.

• Your name and mailing address.
• Your social security number and/or employer identification number.
• Your employee plan number, if applicable.
• The name and mailing address of your representative.
• The types of tax involved.
• The federal tax form number.
• The specific year(s) or period(s) involved.
• For estate tax matters, the decedent's date of death.
• A clear expression of your intention concerning the scope of authority granted to your representative.
• Your signature and date.

You also must attach to the non-IRS power of attorney a signed and dated statement made by your representative. This statement, which is referred to as the Declaration of Representative, is contained in Part II of Form 2848. The statement should read:

1. I am not currently under suspension or disbarment from practice before the Internal Revenue Service or other practice of my profession by any other authority,
2. I am aware of the regulations contained in Treasury Department Circular No. 230 (31 CFR, Part 10) concerning the practice of attorneys, certified public accountants, enrolled agents, enrolled actuaries, and others,
3. I am authorized to represent the taxpayer(s) identified in the power of attorney; and
4. I am authorized to practice before the Internal Revenue Service as an individual described in 26 CFR 601.502(b).

Required information missing.   The IRS will not accept your non-IRS power of attorney if it does not contain all the information listed above. You can sign and submit a completed Form 2848 or a new non-IRS power of attorney that contains all the information. If you cannot sign an acceptable replacement document, your attorney-in-fact may be able to perfect (make acceptable to the IRS) your non-IRS power of attorney by using the procedure described next.

Procedure for perfecting a non-IRS power of attorney.   Under the following conditions, the attorney-in-fact named in your non-IRS power of attorney can sign a Form 2848 on your behalf.

1. The original non-IRS power of attorney grants authority to handle federal tax matters (for example, general authority to perform any acts).
2. The attorney-in-fact attaches a statement (signed under penalty of perjury) to the Form 2848 stating that the original non-IRS power of attorney is valid under the laws of the governing jurisdiction.

The Form 2848 prepared by your attorney-in-fact should be signed in the following manner: Jane Taxpayer (your name), by John Attorney (your attorney-in-fact's name) under authority of the attached power of attorney.

The individual named as representative on Form 2848 must sign and date Part II of the form. This can be the attorney-in-fact named in the original power of attorney or any other individual recognized to practice before the IRS.

Example.   John Elm, a taxpayer, signs a durable power of attorney that names his neighbor, Ed Larch, as his attorney-in-fact. The power of attorney grants Ed the authority to perform any and all acts on John's behalf. However, it does not list specific tax-related information such as types of tax or tax form numbers.

If Ed attaches a statement (signed under the penalty of perjury) that the durable power of attorney is valid under the laws of the governing jurisdiction, he can sign a completed Form 2848 and submit it on John's behalf. If Ed can practice before the IRS (see Who Can Practice Before the IRS, earlier), he can name himself as representative on Form 2848. Otherwise, he must name another individual who can practice before the IRS.

Processing a non-IRS power of attorney.   The IRS has a centralized computer database system called the CAF system. This system contains information on the authority of taxpayer representatives. Generally, when you submit a power of attorney document to the IRS, it is processed for inclusion on the CAF system. Entry of your power of attorney on the CAF system enables IRS personnel, who do not have a copy of your power of attorney, to verify the authority of your representative by accessing the centralized authorization file. It also enables the IRS to automatically send copies of notices and other IRS communications to your representative.

You can have your non-IRS power of attorney entered on the CAF system by attaching it to a completed transmittal Form 2848 and submitting it to the IRS. Your signature is not required; however, your attorney-in-fact must sign the Declaration of Representative (see Part II of Form 2848).

Preparation of Form - Helpful Hints

The preparation of Form 2848 is illustrated by an example, later under How Do I Fill Out Form 2848. However, the following will also assist you in preparing the form.

Line-by-line hints.   The following hints are summaries of some of the line-by-line instructions for Form 2848.

Line 1 - Taxpayer information.   If a joint return is involved and you and your spouse have different addresses, you must enter each address. If you and your spouse choose different representatives, each of you must file a separate Form 2848.

Line 2 - Representative(s).   Only individuals may be named as representatives. If your representative has not been assigned a CAF number, enter None on that line and the IRS will issue one to him or her. If the representative's address or phone number has changed since the CAF number was issued, you should check the appropriate box. Enter your representative's fax number if available.

If you want to name more than three representatives, you must attach a list of the additional representatives to the form. Normally, the IRS will send notices and other written communications to you and a copy to the first representative listed. However, you can choose other options (see line 7 of Form 2848).

Line 3 - Tax matters.   You can list any tax years or periods that ended before the date the form is signed. You also may list future periods that end no later than 3 years from that date. However, avoid general references such as all years or all periods.

If any column does not apply to your particular tax matter, you should enter not applicable in that column and, instead, specifically describe the matter to which the power of attorney pertains.

Line 4 - Specific use not recorded on Centralized Authorization File (CAF).   Certain matters cannot be recorded on the CAF system. Examples of such matters include, but are not limited to, the following.

1. Civil penalty issues.
2. Trust fund recovery penalties.
3. Requests for a private letter ruling or technical advice.
4. Applications for an employer identification number (EIN).
5. Claims filed on Form 843, Claim for Refund and Request for Abatement.
6. Corporate dissolutions.
7. Requests for change of accounting method.
8. Requests for change of accounting period.

If the tax matter described on line 3 of Form 2848 concerns one of these matters specifically, check the box on line 4. If this line is checked, your representative should bring a copy of the power of attorney to each IRS office where the specific matter will be discussed.

Where To File a Power of Attorney

Generally, mail or fax Form 2848 directly to the IRS. To determine where you should file Form 2848, see the Where To File Chart, below.

If Form 2848 is for a specific use, mail or fax it to the office handling that matter. For more information on specific use, see the Instructions for Form 2848, line 4.

Where To File chart

Facsimile copies.   The IRS will accept a copy of a power of attorney that is submitted by facsimile transmission (fax). If you choose to file a power of attorney by fax, be sure the appropriate IRS office is equipped to accept this type of transmission. See the Where To File Chart for fax numbers of the centers receiving Form 2848.

Updating a power of attorney.   You must submit any update or modification to an existing power of attorney in writing. Your signature (or the signature of the individual(s) authorized to sign on your behalf) is required. Do this by sending the updated Form 2848 or non-IRS power of attorney to the IRS office(s) where you previously sent the original(s), including the center where the related return was, or will be filed.

Any recognized representative may substitute or delegate authority if the substitution or delegation is specifically authorized in the original power of attorney. To make a substitution or delegation, the representative must file the following items with the IRS office(s) where the power of attorney was filed.

1. A written notice of substitution or delegation signed by the recognized representative.
2. A written declaration of representative made by the new representative.
3. A copy of the power of attorney that specifically authorizes the substitution or delegation.

Revoking a power of attorney.   A newly filed power of attorney concerning the same matter will revoke a previously filed power of attorney. However, the new power of attorney will not revoke the prior power of attorney if it specifically states it does not revoke such prior power of attorney and either of the following are attached to the new power of attorney.

• A copy of the unrevoked prior power of attorney, or
• A statement signed by the taxpayer listing the name and address of each representative authorized under the prior unrevoked power of attorney.

Note.   The filing of Form 2848 will not revoke any Form 8821 that is in effect.

If you want to revoke an existing power of attorney and do not want to name a new representative, send a copy of the previously executed power of attorney to the IRS office(s) where it was originally filed. Write "REVOKE" across the top of the power of attorney. The copy must have a current date and signature of the taxpayer who signed the original.

If you do not have a copy of the original power of attorney you want to revoke, send a statement to the IRS office(s) where you filed the original. The statement of revocation must:

• State that the authority of the power of attorney has been revoked.
• List the name and address of each representative whose authority has been revoked

You also must sign and date the statement.

Withdrawal by the recognized representative.   A recognized representative may withdraw from representation by filing a statement with each office where the original power of attorney was filed. The statement must be signed by the representative and identify the name and address of the taxpayer(s) and tax matter(s) from which the representative is withdrawing. The representative must include his or her CAF number on the statement if one has been assigned.

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