P-3 (Representation Before the IRS) Third party Authorization Flashcards
What is form 8821?
Form 8821 is Tax Information Authorization form.
Form 8821 is strictly a disclosure authorization form and cannot be used to designate an individual to represent you.
What is the Centralized authorization file (CAF)?
A database of all appointed representatives.
The Centralized Authorization File (CAF) is an automated file containing information regarding the authority of an individual appointed under a power of attorney or person designated under a tax information authorization.
What is a CAF for?
A CAF number assists IRS personnel in determining whether a practitioner has been appointed as a taxpayer’s representative.
What are three ways a taxpayer can revoke a power of attorney?
A power of attorney can be revoked by:
1. Filing a copy of a previously filed form 2848 with the word, REVOKE written across the top and the taxpayer’s signature and date of revocation written on the page.
- Filing a new Form 2848.
- Filing a written statement of revocation with the appropriate IRS office.
A taxpayer can appoint a new representative without revoking a previously-filed appointment by completing what line on form 2848?
A taxpayer can appoint a new representative without revoking a previously-filed appointment by completing Line 6 of Form 2848.
Under what circumstance is a representative appointed pursuant to Form 2848 permitted to receive and endorse a refund check on a client’s behalf?
If authorized by the taxpayer, a tax return preparer may affix the taxpayer’s name to a refund check for the purpose of depositing the check into an account in the name of the taxpayer.
(extended)
26 CFR 1.6695-1(f) provides that a tax return preparer may affix the taxpayer’s name to a refund check for the purpose of depositing the check into an account in the name of the taxpayer or in the joint names of the taxpayer and one or more other persons (excluding the tax return preparer) if authorized by the taxpayer or the taxpayer’s recognized representative.
In order for an Enrolled Agent to represent a taxpayer before the IRS, what form must be signed?
Form 2848 (Power of Attorney) and Declaration of Representative must be filed to allow an Enrolled Agent to represent a taxpayer before the IRS.
How many years in the future can an authorization on a Form 2848 be recorded to the Centralized Authentication File (CAF)?
The current year, plus 3 years.
How is Form 2848 Power of Attorney and Declaration of Representative different from Form 8821 Tax Information Authorization?
Form 2848 includes all the tax information authorizations of Form 8821 and includes additional representation authorization
What does the issuance of CAF number mean?
The recipient has been granted authority to receive a taxpayer’s confidential tax information.
Before filing Form 2848, an enrolled agent must make sure that the Form includes what three things?
The form must include the Enrolled Agent’s enrollment card number, CAF number if assigned and the enrolled agent’s PTIN.
A taxpayer can use from 2848 (POA) to appoint what individuals to represent them?
An attorney, certified public accountant, enrolled agent, officer, full-time employee, family member, enrolled actuary, unenrolled return preparer, student attorney, student CPA or enrolled retirement agent.
A representative who signs a Form 2848, Power of Attorney, declares under penalty of perjury that he or he is aware of what?
A representative who signs a Form 2848, Power of Attorney, declares under penalty of perjury that he or he is aware of the regulations in Treasury Department Circular No. 230.
This is one of the 4 attestations made under the ‘penalty of perjury’ statement in Part II of Form 2848.
What type of POA refers to the authorization of a representative to act on a taxpayer’s behalf even if the taxpayer becomes incapacitated or incompetent?
A durable power of attorney.
Durable power of attorney does not expire if a taxpayer becomes incapacitated or incompetent. This is a condition that requires specific authorization on Form 2848. Other powers that require special authorization include signing a return or accepting a refund check on a taxpayer’s behalf.
Does Form 2848 have a provision that allows a taxpayer to authorize his attorney, CPA, or enrolled agent to receive and endorse refund checks on his behalf?
No,
Neither Form 2848, Power of Attorney and Declaration of Representative, nor Form 8821, Tax Information Authorization, contain a provision for authorizing a representative to endorse a taxpayer’s refund check.
