Reporting Agents have long served an important role in our nation's tax collection system as a conduit between employers and the IRS. Reporting Agents improve the efficiency of IRS tax collection and compliance. Reporting Agents assist employers in making required tax deposits and tax information filings to the Federal Government and to state and local governments.
GENERAL INFORMATION
Definition - Reporting Agents (RAs) are companies (not individuals) that perform payroll services for other businesses. RAs adhere to guidelines in Revenue Procedure 2007-38 (PDF), formerly Revenue Procedure 96-17, (Publication 1474 (PDF) and Revenue Procedure 96-18 (PDF)).
Authority - The Service has prescribed Form 8655 (PDF) (Reporting Agent Authorization for Magnetic Tape/Electronic Filers) as the appropriate authorization form for use by a taxpayer to designate an Agent to: 1) File and sign certain tax returns, 2) Make Federal Tax Deposits, 3) Receive duplicate copies of official notices, correspondence, transcripts or other information. The person signing the Form 8655 should be someone who has authority to legally bind the corporation, partnership or sole proprietor entity.
Records Maintenance - The Reporting Agent File (RAF) is a database that contains Reporting Agent and taxpayer/client records. As of January 2002, the RAF Unit was centralized to the Ogden Campus.
Revocation - The receipt of a new Form 8655 does not revoke any prior reporting agent authorizations. Also it does not revoke Powers of Attorney (Form 2848 (PDF)) or Tax Information Authorizations (Form 8821 (PDF)) on the Centralized Authorization File (CAF).
Substitute Form 8655 - Revenue Procedures 2003-69 (formerly Revenue Procedures 96-17) States "An authorization may be submitted on Form 8655, or any other instrument which clearly contains the same information required to be provided on Form 8655." Also stated in the procedures all Substitute Forms 8655 must be approved by the Tax Forms and Publication Branch located in the National Office. No Service Center nor Campus has the authority to approve a Substitute Form 8655.
Mergers/Take Over/Buy Outs - When a company and/or organization is involved in a merger/take over or buy out, copies of the implementing documents for the purchase or acquisition, maybe forwarded to the Ogden RAF Unit. They will then forward the paperwork/information to the IRS Counsel for a ruling. Because of the complexity of these acquisitions determination of the need for new Form 8655’s will be made on a case by case basis. During the interim it is recommended that the Company/Organization begin to obtain new Form 8655s.
References/Related Topics
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