Filing an IRS Form 2848 involves giving someone the power of attorney to represent as you in dealings with the Internal Revenue Service. The Tax Relief Center talks about the advantages and disadvantages of filling out and filing Federal Form 2848 and how you can go through this process.
RELATED: 4 Instances That May Require An IRS Power Of Attorney
In this article:
- What Is IRS Form 2848 and Why Do I Need It?
- The Advantages and Disadvantages of Form 2848
- Form 2848 Instructions for Application
- IRS Form 2848 Revocation to Remove the Power of Attorney from Representatives
- IRS Power of Attorney 8821 to Limit What Your Representatives Can Do For You
- Important Tips When Filing Your IRS 2848 PDF
IRS Form 2848 Instructions for Easier Applications
What Is IRS Form 2848 and Why Do I Need It?
The IRS calls Form 2848 the Power of Attorney and Declaration of Representative Form. It allows you to authorize a tax specialist to represent you in negotiations with the IRS.
Take note that you need to cede authority to a certified tax specialist and not just anybody. The IRS only allows you to give authority to an intern accountant or a junior tax specialist if they are working for the Tax Advocate Service and there is permission from the same office.
The Advantages and Disadvantages of Form 2848
Advantage: Tax Form 2848 Will Give You Freedom and Convenience
Who has the time to fill out the forms, take a number, and wait hours in a government office? Empowering a tax specialist or an attorney through a 2848 tax form gives them the authority to do the legwork for you so you’re free to do more productive things.
Disadvantage: The 2848 Form Power of Attorney Sacrifices Financial Confidentiality
The tax specialist receives your confidential tax information and inspects it. Once you file an IRS power of attorney Form 2848, the person you name on the form has all the powers you would have.
The good thing is, there are sections of this form that allow exceptions to be noted.
Advantage: The 2848 IRS Form Allows You to Fully Draw on Another Person’s Expertise
There are times when we get in the way of the tax specialist helping us by thinking we know how to handle our affairs better since it’s our own business. Form 2848 gives the other person more leeway to work on our tax issues because we’re essentially handing them the reins.
Disadvantage: The 2848 Form Might Keep You Out of the Loop Totally
When is there too much authority? If you no longer know what your tax specialist has been deciding for you.
At the end of the day, it is still your case, and you can check some boxes in Form 2848 to limit your representative’s power in representing you.
Form 2848 Instructions for Application
There are certain instructions you have to follow when filing the IRS Form 2848:
1. Commit to Understanding Key IRS Concepts and Updates First
Even if someone else handles your filing for you, you still need to be updated with the latest revisions to avoid IRS penalties and other complications.
2. Go to the Online Fillable Form 2848
Which you can find and download by going to this IRS document.
3. Fill in the Necessary Information in Your Form 2848
Start filling in the personal information on the form.
4. Put in the Names of the Specialists You are Authorizing to Represent You
Only two groups of people can be included as your power of attorney. You can add a credentialed tax professional such as an enrolled agent, attorney, or certified public accountant (CPA).
5. Get Your Representatives to Sign Your Copy of the Form 2848
You must have their signatures and the dates when they signed your Form 2848. If this information is not included, your form will be returned to you.
6. Find Out Where to Fax Form 2848
You can refer to the IRS Instructions to the Form 2848 to find out the particular number you need to fax your form to. People in different states fax different numbers, so it is best to consult this resource and find out about other points regarding the Power of Attorney.
7. Wait for IRS Approval
Once approved, these people can represent you before any of the IRS’ departments.
RELATED: Complete Guide To IRS Form 8283
IRS Form 2848 Revocation to Remove the Power of Attorney from Representatives
An IRS Form 2848 revocation is a fairly simple matter to take care of. There are two ways you can do this. If you have a copy of the IRS Form 2848, you can simply write the word “REVOKE” across the top. You also need to sign the form again on line seven and include the day’s date.
The second way is to send the IRS a statement listing the names and addresses of the people whose authority you are revoking. You must sign and date this statement as well.
Note that a revocation of a Form 2848 does not change the conditions of your Form 8821 and vice versa. These are two different forms and must be handled separately.
IRS Power of Attorney 8821 to Limit What Your Representatives Can Do for You
There might be cases when you want someone to be able to receive and/or inspect tax documents that would otherwise be confidential. You can file Form 8821 if the person you want to represent you doesn’t meet the requirements for the Form 2848 form as noted above.
The specific specialist is only able to be your representative in front of customer services personnel and auditors. Another requirement when you use IRS Form 8821 is the person is only able to discuss tax returns they themselves have filled out and signed.
Important Tips When Filing Your IRS 2848 PDF
Create a FREE Form 2848 (Power of Attorney and Declaration of Representative) form2848,#WaPo,#Intel https://t.co/xwUcgg0Pd8
— Charlie Davidson (@altosites) April 3, 2018
1. Go Check the IRS Website for Resources
To make it easier for taxpayers, the IRS maintains the Form 2848 in PDF form on its website.
2. Remember to Include the Amount of Time the Representative Will Serve Your Needs
It is important to remember you cannot leave the amount of time this person can represent you open-ended. Doing so can mean a rejection of your Form 8821 submission.
3. Fill It Out Online and Print It Out – It’s That Easy
After you fill out as much of the information that you can on the PDF, you need to print it out for signing. Everyone you list as your representative must sign their names and date the form.
4. Understand Your Liabilities
Regardless of whether you file tax Form 8821 or Form 2848, you are ultimately responsible for any tax liability you might incur. Like other official IRS forms, these power of attorney forms are available on the IRS official site.
5. Use the Printable IRS Form 2848 Anytime
You can download the printable IRS Form 2848 for free to use anytime it’s convenient for you.
6. Take All the Time You Need
If you need more time to file your IRS documents, you can use the IRS Form 4868 or application for automatic extension of time to file.
7. Stay Informed
It’s your tax liability so it is still your responsibility. Constantly ask your representatives about any updates during the process to stay and come out on top of any issues.
The IRS created and maintains the Tax Form 2848 to allow professionals to lighten your tax obligations by freeing you of the manual work of having to file returns and forms yourself, or negotiating for your best interests. To use it responsibly, remember it is just a tool and not an escape hatch from liability.
Do you have more questions about the IRS Form 2848? Post them in the comments section below.
If you owe back taxes, visit taxreliefcenter.org for more information on tax relief options.
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Editor’s Note: This post was originally published on April 11, 2018. It has been updated for quality and relevancy.