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Part 4. Examining Process

Chapter 11. Examining Officers Guide (EOG)

Section 55. Issues Involving a Taxpayer's Representative (Cont. 1)

4.11.55  Issues Involving a Taxpayer's Representative (Cont. 1)

4.11.55.1 
Power of Attorney and Tax Information Authorization

4.11.55.1.10  (01-15-2005)
Notices and Communications

  1. Original notices and other written communications will be sent to the taxpayer and a copy to the first listed representative unless the taxpayer checks one or more of the boxes on line 7 of Form 2848.

    If ... Then ...
    no box is checked on line 7 send the original of all written communications to the taxpayer(s) and send a copy to the first listed representative.
    if box (a) on line 7 is checked also send a copy to the second representative
    if box (b) on line 7 is checked send the original of all written communications to the taxpayer(s)

    Note:

    No copies should be sent to any representatives.

    .
       
       

  2. For TIA's (Form 8821), the taxpayer must check either box 5a or 5b unless the TIA is for a specific use not recorded on the CAF.

    1. If box 5a is checked, copies of written communications will be sent to the designee listed on Form 8821.

    2. If box 5b is checked, the designee will not receive any copies of written communications.

    Note:

    The taxpayer will always receive the original of all written communications when dealing with a TIA (Form 8821).

  3. If copies of letters and notices are to be sent to the authorized designee, Form 3198, Special Handling Notice, should be annotated as such.

4.11.55.2  (01-15-2005)
Interviewing And Control Of The Examination

  1. References for Interviewing and Control Of The Examination:

    • IRC 6001 - Requirement for taxpayers to keep records

    • IRC 7521(c) - Service cannot require the presence of a represented taxpayer without an administrative summons

    • IRC 7525 - Confidentiality privileges relating to taxpayer communications with practitioners

    • IRC 7601 - Authority to examine taxpayers

    • IRC 7602 - Authority to Request Information

    • IRC 7605 - Authority to Fix Time & Place of Appointment

    • IRM 4.10.1.6.2 - Confidentiality Privileges Relating to Taxpayer Communications - Accountant/Client Privilege

    • IRM 4.10.2.7.5 - Scheduling Appointment With the Taxpayer and/or Representative

    • IRM 4.10.2.8 - Scheduling Problems

    • IRM 4.10.2.9.4 - Authority to Request Books, Records, and Accountant's Workpapers

    • IRM 4.10.2.10.2 - Rescheduling the Initial Appointment

    • IRM 4.10.3.2.1 - Who To Interview

    • IRM 4.10.3.4.5.2 - Interview Techniques

    • IRM 4.11.46 - Summons - Form 2039

    • IRM 21.3.7 - Processing Third-Party Authorizations

    • SB/SE Delegation Order 145.7 - Authority to Request and Inspect Preparers Records

    • Circular 230 (31 CFR 10.0 through 10.93) - Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers before the Internal Revenue Service

    • Publication 947 - Practice Before the IRS and Power of Attorney

4.11.55.2.1  (01-15-2005)
Interviewing Represented Taxpayers

  1. The purpose of an initial interview is to obtain an understanding of the taxpayer's financial history, the business operations, and the accounting records in order to evaluate the accuracy of the books and records and to determine the depth and scope of the examination.

  2. Proper depth and scope of the examination form the basis of a quality examination.

4.11.55.2.1.1  (01-15-2005)
Taxpayer's Presence Required?

  1. IRC 7521(c) permits a representative authorized by a taxpayer to represent that taxpayer at any interview. A taxpayer may not be required to accompany a representative in the absence of an administrative summons.

  2. RRA 98, section 3502, requires taxpayers to be more clearly informed of their rights to be represented at interviews and to have the interview suspended if the taxpayer wishes to consult with a person authorized to practice before the IRS. Publications 1, Your Rights as a Taxpayers, and Publication 3498, The Examination Process, have been revised to reflect this.

  3. Examiners must ensure that they do not violate or give the perception of violating the taxpayer's right to representation.

  4. Although a request for the taxpayer's voluntary presence should be made through his/her representative, the taxpayer's presence will not be mandated as long as the person being interviewed:

    1. has first hand knowledge of the taxpayer's business, business practices, bookkeeping methods, accounting practices and the daily operation of the business.

    2. provides factual, reliable information to questions asked by the examiner;

    3. timely provides follow-up information for any questions that could not be answered at the time of the initial interview; and

    4. has a properly executed Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, from the taxpayer ( See IRM 4.11.55.1.7.).

  5. If the taxpayer is not available for the initial interview, or if the representative is adamant in not having the taxpayer present at the initial interview, the examiner should attempt to conduct the initial interview with the taxpayer's representative.

  6. If the examiner determines that the representative does not have sufficient knowledge of the taxpayer and his/her business to provide factual information, the examiner should request an interview with the individual who possesses that information.

    Note:

    The examiner will not conduct the audit with someone who will serve as a courier, shuttling back and forth between the Service and the taxpayer with Service questions and client answers, with Service follow-up questions and client follow-up answers. This type of arrangement impedes the flow of the examination and does not do justice to the tax system or the taxpayer.

  7. The examiner must have reliable information in order to evaluate the accuracy of the books and records and determine the scope and depth of the examination. In many cases this will be the taxpayer.

  8. If the taxpayer's representative does not comply with the request to interview someone more knowledgeable, including the taxpayer, the examiner should consider management involvement and/or by-passing the representative ( See IRM 4.11.55.3)

4.11.55.2.1.2  (01-15-2005)
Request for Representation - Suspension of Interview

  1. Taxpayers have the right to representation at any time during the examination process.

  2. IRC 7521(b)(2) states that if the taxpayer requests, during any interview, to consult with his/her representative (who is permitted to represent the taxpayer before the Service), the examiner will suspend the interview regardless of whether the taxpayer may have answered one or more questions.

    Exception:

    An interview will not be suspended if required by a court order or it was initiated via an administrative summons issued under subchapter A of chapter 78.

  3. Allow the taxpayer a minimum of 10 business days to secure representation before taking any follow-up action to schedule the appointment (extensions can be granted on a case-by-case basis).

    Caution:

    A taxpayer can file a civil suit against the IRS under 26 U.S.C. 7433 if an IRS employee intentionally or recklessly disregards the provision of the tax code by denying the taxpayer the right to consult with representation or bypassing the representative without proper approval.

4.11.55.2.2  (01-15-2005)
Controlling The Examination

  1. The Taxpayer Bill of Rights has not altered the examiners right and obligation to control the examination.

  2. Neither the taxpayer nor the taxpayer's representative will be allowed to control or unduly influence the scope or depth of an examination. To allow a representative or taxpayer to put things off will eventually permit them to dictate the conduct of the examination.

  3. The examiner must be firm yet courteous when dealing with the representative and taxpayer. There are several ways a representative may be uncooperative and thereby attempt to seize control of the examination. Some examples are as follows:

    • Procrastinating

    • Failing to provide requested documents

    • Failing to attend conferences

    • Constantly questioning the need for certain information

    • Denying the examiner access to the taxpayer

    • Demonstrating abusive and/or aggressive behavior and attitude

  4. Examiners will document all contacts, cancellations of appointments, and unanswered telephone calls and letters.

  5. When a representative or taxpayer attempts to control the examination and/or procrastinate, the examiner should notify their manager and document this in their activity record.

  6. Consider issuing a summons ( See IRM 4.11.55.2.2.2.3. ), or in the case of a representative, by-passing the representative ( See IRM 4.11.55.3.).

4.11.55.2.2.1  (01-15-2005)
Governing Documents for Representatives

  1. Knowing the documents which govern those who practice before the IRS is an excellent starting point in the management of an examination.

4.11.55.2.2.1.1  (01-15-2005)
Circular 230

  1. Circular 230 is an effective tool and should be referred to more often when dealing with procrastinating representatives.

  2. Circular 230 sets forth the regulations governing the practice of attorney's, CPAs, enrolled agents, and enrolled actuaries before the IRS.

  3. Some of the pertinent sections of the Circular 230 are provided below:

    1. 31 CFR 10.20 - Information to be furnished

    2. 31 CFR 10.23 - Prompt disposition of pending matters

    3. 31 CFR 10.51 - Incompetence and disreputable conduct

    4. 31 CFR 10.53 - Receipt of information concerning practitioner

  4. Reminding representatives of these provisions can help combat procrastination.

4.11.55.2.2.1.2  (01-15-2005)
Revenue Procedure 81-38

  1. Rev. Proc. 81–38 prescribes the standards of conduct, the scope of authority, and the circumstances and conditions under which an individual preparer of tax returns may exercise, without enrollment, the privilege of limited practice as a taxpayer's representative before the IRS

  2. The following is a sampling of provisions listed in Rev. Proc. 81–38:

    1. The unenrolled preparer will be expected to recognize questions, issues and factual situations of such difficulty as to require additional expert assistance and to suggest to the taxpayer that the he/she seek such assistance.

    2. An unenrolled preparer shall act in such a manner as to not commit any act of disreputable conduct. Disreputable conduct includes, but is not limited to, the items contained in section 10.51 of Circular 230 (31 CFR 10.51).

    3. An unenrolled preparer shall not neglect or refuse to submit records or information in any matter before the IRS upon proper and lawful request and shall not interfere, or attempt to interfere, with any proper and lawful efforts to obtain information, unless the preparer believes in good faith and on reasonable grounds that the request for, or effort to obtain, such record or information is of doubtful legality.

    4. An unenrolled preparer shall exercise due diligence in preparing or assisting in preparing, approving, and filing of returns, documents, affidavits, or other papers relating to IRS matters. The preparer will also exercise due diligence in determining (1) the correctness of oral and written representations made by the preparer to the service, and (2) the correctness of representations made by the preparer to the client with reference to any matter administered by the Service.

    5. Any examining officer, or other service officer or employee who has reason to believe that an unenrolled preparer's conduct has been or is such as would render the preparer ineligible to appear as the taxpayer's representative before the IRS, shall communicate this information to the Area Director of the taxpayer.

4.11.55.2.2.2  (01-15-2005)
Dealing With Procrastination

  1. We need to be forceful and resourceful in dealing with people when appropriate. There are a variety of tools that enable you to address examination delays.

  2. There is no magical or clear-cut solution to the problem. Typically, a variety of actions need to be taken when faced with procrastinating people, and much depends on your ability to recognize the problem and properly document your case file.

  3. In addition, receiving support from management is very important.

4.11.55.2.2.2.1  (01-15-2005)
A Firmer Approach

  1. The ability to exercise good judgment cannot be overemphasized. Still, there are times when a more aggressive approach to procrastination and untimely IDR responses needs to be taken by examiners and managers.

    Reminder:

    Remember being reasonable is a two-way street. Some of the delays in an examination are attributable to the Service. For example, the priorities and assignments of examiner can change.

  2. Examiners need to take a firmer position with respect to allowing additional time for information. Examiners should not postpone appointments without valid reason(s) and should scrutinize any developing patterns in the postponement/cancellation of appointments.

  3. Examiners need to maintain their activity records and document all contacts, tactics, and misrepresentations made by people. Documenting the procrastinating tactics used in the activity record will assist you if and when the time comes to use bypass or summons procedures.

  4. Problem cases need to be aggressively worked versus being " put on the back burner" .

  5. Pending IDRs must be current and when responses are overdue or insufficient action needs to be taken immediately.

  6. IDRs must be as specific as possible.

  7. Uncooperative people will attempt to obstruct communication. A classic example is where people provide incomplete responses to requests for information with the hopes of examiners giving in.

    Note:

    This tactic can be very frustrating. The examiner can mitigate this problem by providing a very detailed IDR and orally going over it with taxpayer/representative at the time of submission and again at the time the response is provided.

  8. Get managerial involvement once you can demonstrate unreasonable delays have occurred as a direct result of people's actions or lack of action.

4.11.55.2.2.2.2  (01-15-2005)
Correspondence

  1. Most people are concerned that the money they're spending for representation is being spent effectively.

  2. Although the examiner is obligated to observe the taxpayer's representative, taxpayers should be kept informed of all stages of the examination.

  3. Examiners should forward a copy of any correspondence, discussions, reports and/or other material to the taxpayer at the same time it is sent to the representative (See 26 CFR 601.506).

  4. In order not to invalidate "effective notice" , you should provide all written correspondence to the taxpayer even in cases where proper notice is given to their representative.

4.11.55.2.2.2.3  (01-15-2005)
Summons

  1. The committee report on Public Law 100-647 (100 PL 647) states "the IRS may notify a taxpayer that the taxpayer's representative is responsible for unreasonable delay, request that the taxpayer appear for an interview, and inform the taxpayer that an administrative summons requiring the taxpayer's attendance at an interview may be issued. The committee intends that in instances of abuse of this process (such as repeated suspension of interviews to contact different representatives), the IRS will issue an administrative summons."

  2. If the representative and the taxpayer deny the request to interview the taxpayer for those cases in which we determine it is appropriate, the examiner and group manager should strongly consider issuing a summons (See IRM 4.11.46).

  3. A taxpayer does not need to refuse a request to produce records or information before a summons can be issued. If there is a refusal, however, whether direct or indirect, it should be properly established and supported by adequate documentation.

  4. Posing the following questions and evaluating the answers will assist in determining whether a summons should be issued:

    1. Has there been a clear refusal to provide books, records, and/or testimony?

    2. Can vital information required for a material matter be obtained from any other source within a reasonable period of time and without extraordinary effort?

    3. Is there a statute problem?

  5. A decision to use the summons based on the above criteria will provide reasonable assurance that the summons can be successfully enforced should it become necessary.

4.11.55.2.2.3  (01-15-2005)
Refusal To Provide Books And Records Requested

  1. Under IRC section 7602(a), the examiner is authorized to " ... examine any books, papers, records, or other data which may be relevant or material to such inquiry."

  2. If necessary, the examiner should remind the taxpayer and/or representative of the Service's right by law to examine the books and records. Also, if necessary, the examiner should remind the representative of his/her duties and obligations under Circular 230.

  3. An accountant's or other return preparer's workpapers used to prepare the return (including workpapers reconciling the books to the return and adjusting entries) are included under IRC section 7602(a).

  4. Other sections in the Examining Officer's Guide relevant to controlling the examination include Summons (IRM 4.11.46), By Pass of a Representative ( See IRM 4.11.55.3.), and Privileged Communications ( See IRM 4.11.55.2.3.).

4.11.55.2.3  (01-15-2005)
Privileged Communications

  1. IRC 7525 creates a statutory confidentiality privilege for communications from a taxpayer to any "federally authorized tax practitioner " concerning "tax advice" .

  2. Although this communications privilege is partly defined by reference to, and is no broader than, the attorney-client privilege, it is clearly a different privilege, created solely by statute, and defined as much by the statutory language as by reference to the common law attorney-client privilege.

  3. The confidentiality protection applies to communications that would be considered privileged if they were between the taxpayer and an attorney and that relate to noncriminal:

    1. Tax matters before the IRS, or

    2. Tax proceedings brought in federal court by or against the United States.

  4. FEDERALLY AUTHORIZED TAX PRACTITIONER - Any person described in Circular 230 who is an attorney, certified public accountant, enrolled agent, enrolled actuary, or appraiser.

  5. TAX ADVICE - Advice given by a Federally authorized tax practitioner acting within the scope of authority to practice before the IRS.

4.11.55.2.3.1  (01-15-2005)
Confidentiality Privilege Does Not Apply

  1. The confidentiality privilege does NOT apply to the following:

    1. communications made prior to the enactment date (7/22/98).

    2. information disclosed to a tax practitioner for the purpose of preparing a return.

    3. written communications between the tax practitioner and a director, shareholder, officer, employee, agent, or representative of a corporation that promotes the direct or indirect participation of the corporation in any tax shelter as defined in IRC section 6662(d)(2)(C)(iii).

    4. information that is also available from non-privileged sources.

    5. communication between the taxpayer's tax practitioner and a third-party who provides information about the taxpayer to the practitioner ( US vs. Ackert, 169 F. 3d 136(2d Cir. 1999)).

    Note:

    This confidentiality privilege cannot be used in any administrative proceeding with an agency other than the IRS.

4.11.55.2.3.2  (01-15-2005)
Assertion Of The Confidentiality Privilege

  1. The taxpayer must assert the confidentiality privilege; it is not automatic.

  2. The taxpayer can assert the confidentiality privilege in any " non-criminal" tax matter before the Service, and any " non-criminal" tax proceeding in Federal court with respect to such matter.

  3. A case is a "non-criminal tax matter before the Service " until the matter is referred to the Criminal Investigation Division for the assignment of a special agent to the matter. Once the matter ceases to be a non-criminal tax matter, the taxpayer may no longer assert the statutory privilege created under section 7525. Thus the Service may obtain the information previously withheld.

  4. If the taxpayer asserts the confidentiality privilege, the examiner should do the following:

    1. Request a written statement from the federally authorized tax practitioner providing the reasons why the privilege is being asserted.

    2. Contact Local Counsel for guidance.

4.11.55.3  (01-15-2005)
By-Pass of a Representative

  1. References for By-Pass of a Representative:

    • IRC 7521(c) - Authority to notify taxpayer directly that their representative is responsible for unreasonable delay or hindrances to an examination

    • IRM 4.10.3.2.1.1 - Procrastination by the Representative

    • Circular 230 Section 10.53 - Authority for making a report of selected misconduct

4.11.55.3.1  (01-15-2005)
Overview

  1. IRC 7521(c) states that an examiner with the manager's approval "may notify the taxpayer directly that such officer or employee believes such representative is responsible for unreasonable delay or hindrance of an Internal Revenue Service examination or investigation of the taxpayer. "

  2. The by-pass procedures permit the employee to contact the taxpayer directly and to request any information necessary to complete the examination.

  3. The representative continues to represent the taxpayer and copies of all correspondence issued to the taxpayer should be sent to the representative. The taxpayer may at his/her discretion forward the requested information/documentation through the representative to the employee.

  4. The by-pass procedures do not constitute a disbarment or a suspension of the practitioner. The taxpayer still has a statutory right to representation per IRC 7521(c).

  5. The Taxpayer Bill of Rights has not modified the by-pass procedures. The conference report on Public Law 100-647 states, in part " ... in cases where the IRS notifies a taxpayer that the taxpayer's representative is responsible for unreasonable delay or hindrance, the IRS may continue to utilize current IRS Manual procedures relating to by-passing a taxpayer's representative" .

4.11.55.3.2  (01-15-2005)
Prior to Requesting a By-Pass

  1. If any of the following occur, the employee must document the case file.

    1. The representative impedes or delays an examination by failing to submit the taxpayer's records or information requested by the employee.

    2. The representative impedes or delays an examination by failing to keep scheduled appointments.

    3. The representative impedes or delays an examination by failure to return telephone calls and written correspondence.

  2. If a trend is noted and the examination is being hindered because of the representative, the group manager will be notified of the representative's actions. The manager will ensure that all reasonable efforts have been taken to deal directly with the representative and that the case file sufficiently details the facts that support how the examination has been delayed or hindered.

  3. Prior to initiating by-pass procedures, the following steps should be taken, depending on the circumstances:

    1. If the employee has not done so already, the taxpayer should be receiving copies of all written correspondence to the representative. This includes all document requests (IDR's). In many cases, the taxpayer may not be aware that the representative is procrastinating and may correct the situation once he/she is made aware of the problem.

    2. A letter should be prepared to the representative from the group manager advising the representative of his/her responsibilities under Circular 230 and conveying advance notice of a possible by-pass because the representative is violating Circular 230. Copies of prior document requests, a list of outstanding items and a brief chronology of events should be attached to the letter. A copy of the letter should be sent to the taxpayer. Letter 4020- A, Warning Letter for Bypass Procedures for Preparers covered under Circular 230, (attorneys, CPAs, enrolled agents and enrolled actuaries) or Letter 4020-B, Warning Letter for Bypass Procedures for Unenrolled Preparers, should be used to provide the required written notice.

      Note:

      The taxpayer should not be sent a copy of the warning letter; however, the Territory Manager should receive a copy and the Area Return Preparer Coordinator should be contacted and advised of the possible bypass.

4.11.55.3.3  (03-01-2007)
Procedures for By-Passing a Representative

  1. If the representative delays or refuses to provide the information requested after repeated attempts, a by-pass request should be prepared for the territory manager's signature.

  2. The decision to seek a by-pass rests with the employee and group manager. In taking such an action, the following items must be considered:

    1. It is imperative that the case file be properly documented with the efforts made by the employee to obtain the information and the actions (or lack thereof) of the representative. It is suggested that when the employee first suspects uncooperative behavior all appointments and document requests should be confirmed in writing.

    2. As previously mentioned, prior to initiating the by-pass procedures, the group manager should contact the representative in writing and advise him of his responsibilities under Section 10.20 of Circular 230 (31 CFR 10.20) and explain the consequences of his continued conduct.

    3. The permission to by-pass must be obtained from the territory manager. A letter to the representative from the territory manager should be prepared. Letter 4020-C, Final Bypass Letter, should be used for this purpose. The letter should outline the facts and circumstances which constitute the basis for the by-pass. The letter is prepared by the employee with the assistance of the Return Preparer Coordinator, as needed. This letter should be routed through the examiner's group manager and the return Area Return Preparer Coordinator to the Territory Manager for signature.

    4. The employee may not circumvent the representative until the territory manager approves the by-pass by signing and issuing the letter in (c) above to the representative.

  3. The by-pass permits the employee to contact the taxpayer directly. The practitioner can continue to represent the taxpayer, if accompanied by the taxpayer. The representative will be afforded the courtesy of being advised of the time and place for future appointments with the taxpayer.

    Note:

    Employees will not use by-pass procedures routinely or simply to interview the taxpayer.

4.11.55.3.4  (01-15-2005)
Use of Summons in Lieu of a By-Pass

  1. A summons should be utilized as opposed to by-pass procedures in the following circumstances:

    1. The taxpayer and the representative are both intentionally uncooperative.

    2. The representative refuses to provide the requested documentation when he/she believes this documentation is privileged or that the request for such records is of doubtful legality. Issuance of a summons in this situation permits the representative to request the Court to consider the legal issue of privilege.

4.11.55.4  (01-15-2005)
Referrals

  1. References to Referrals:

    • 31 USCS § 330 - Practice before the Department of Treasury

    • IRM 1.2.1.11.19 - Policy Statement P-11-86 - Names of disbarred or suspended representatives published in IRB

    • IRM 4.19.1.1.8.1 - Director of the Office of Professional Responsibility - Nonfilers

    • IRM 20.1.6.2.1 - Referrals to Director of the Office of Professional Responsibility

    • IRM 21.3.7.15 - Director of the Office of Professional Responsibility

    • Rev. Proc. 81-38, Section 10 - Referrals of Unenrolled Preparers

    • SB/SE Delegation Order 4.59 - The authority to revoke eligibility of unenrolled preparers to act on behalf of taxpayers before the Service is delegated to Compliance Area Directors

    • Form 8484 - Report of Suspected Practitioner Misconduct

      Note:

      Form 8484 is available from the Electronic Publishing website ( publish.no.irs.gov) or from the OPR website (nhq.no.irs.gov/opr). Its use is optional in making misconduct referrals. A report in any other format must contain all the information required by Form 8484 and its instructions.

    • Office of Professional Responsibility - http://nhq.no.irs.gov/opr/

4.11.55.4.1  (01-15-2005)
Overview

  1. To monitor potential problems, the IRS has a process of referring practitioners for consideration of further disciplinary action.

  2. When an employee has reason to believe, or receives information, that a tax practitioner has violated any of the rules in Circular 230, a written report should be promptly forwarded to the Area Return Preparer Coordinator for possible referral to the Office of Professional Responsibility (formerly Office of Director of Practice) or the Area Director in cases involving an unenrolled preparer.

    Reminder:

    OPR has jurisdiction over attorneys, CPAs, enrolled agents, and enrolled actuaries. Area Directors have jurisdiction over unenrolled return preparers.

4.11.55.4.2  (01-15-2005)
Referral to the Office of Professional Responsibility

  1. A referral to the Office of Professional Responsibility (OPR) is a consideration to institute disciplinary action against a practitioner. If OPR has reason to believe that a provision of the law or regulations governing practice before the IRS has been violated based on the referral, OPR may reprimand or institute proceedings for disbarment or suspension. Each referral should describe and document the practitioner's actions in order to support disciplinary action.

  2. Announcements of censures, disbarments and suspensions normally are published in the Internal Revenue Bulletin. As long as the preparer's name appears on the list, he/she is not permitted to appear before the examiner as an advocate with or without the taxpayer, but only as a witness for the taxpayer under Rev. Proc. 68-29. Additional information is provided in See IRM 4.11.55.1.2.2.

4.11.55.4.2.1  (01-15-2005)
Practitioners under the Office of Professional Responsibility's Authority

  1. The Office of Professional Responsibility exercises jurisdiction over Attorneys, CPAs, Enrolled Agents, Enrolled Actuaries, and Appraisers.

  2. Unenrolled Preparers are under the jurisdiction of the Area Director.

4.11.55.4.2.2  (01-15-2005)
When Should A Referral Be Made To OPR?

  1. Examiners are to exercise discretion in making referrals of specific cases to the Director of the OPR.

  2. In matters involving non-willful conduct, a referral should only be made when it can be established that the preparer has a pattern of failing to meet the required standards of Circular 230.

  3. An isolated instance in which a penalty may apply should not, in and of itself, require a referral unless willful conduct is involved. Accordingly, the imposition of penalties under IRC 6694(a), and IRC 6695(a) through (e) should not automatically generate a referral to the Director of the OPR.

4.11.55.4.2.2.1  (01-15-2005)
Situations Requiring a Mandatory Referral

  1. When the following penalties are asserted against a practitioner a mandatory referral should be prepared:

    1. Understatements due to unrealistic positions (IRC § 6694(a)) - when closed agreed, sustained in Appeals, or closed unagreed without Appeals contact.

    2. Willful or reckless conduct (IRC § 6694(b)) - when closed agreed, sustained in Appeals, or closed unagreed without Appeals contact.

    3. Negotiation of check (IRC § 6695(f)).

    4. Aiding and abetting penalties (IRC § 6701) - The assessment of an aiding and abetting penalty against a tax practitioner or appraiser should mandate an automatic referral. In addition, referrals should be considered in those situations in which the aiding and abetting penalty was considered but not imposed.

    5. Promoting abusive tax shelters (IRC § 6700) - The assessment of an IRC § 6700 penalty against an attorney, CPA or enrolled agent.

    6. Action to enjoin promoters of abusive tax shelters (IRC §§ 7407 and 7408)

    7. Injunctive action under IRC § 7408 taken against an attorney, CPA or enrolled agent.

      Note:

      The Deficit Reduction Act of 1984 expanded IRC § 7408 to include conduct subject to the penalty under IRC § 6701.

4.11.55.4.2.2.2  (01-15-2005)
Situations Which May Warrant A Referral

  1. The following situations may warrant a referral to the Office of Professional Responsibility:

    1. Return preparer referrals made to Criminal Investigation under IRC § 7206.

    2. An appraiser who aids or assists in the preparation or presentation of an appraisal in connection with the tax laws will be subject to disciplinary action if the appraiser knows that the appraisal will be used in connection with the tax laws and will result in an understatement of the tax liability of another person.

    3. A by-pass of representative letter was issued to a tax practitioner.

    4. Disreputable conduct or incompetence described in Circular 230, Section 10.51.

    5. The implication of a tax practitioner in a frivolous tax return matter (IRC 6702) should result in a referral.

    6. The accuracy-related penalty under IRC 6662(d) for a substantial understatement is asserted and the facts of the case suggest the practitioner did not exercise due diligence in the preparation of the return.

      Note:

      IRM 20.1.5.8 provides that whenever IRC 6662(d) is not asserted because the taxpayer has met the "advice" standard under the reasonable cause exception, contact with the preparer is mandatory before the case is closed from the group. A comment should be made on Form 4318, Penalties, as to consideration of a referral to the Office of Professional Responsibility.

    7. The Office of Professional Responsibility should receive referrals in instances where a practitioner fails to comply with the tax shelter registration requirement or characterizes the registration as an IRS endorsement of the shelter under IRC 6111 and IRC 6112 and takes a position on a tax return which reflects the endorsement.

    8. Opinions rendered by tax practitioners and used or referred to in the marketing of tax shelters (abusive or otherwise) issued after May 23, 1984. Tax shelter opinions which violate Circular 230 will be referred to the Office of Professional Responsibility.

    9. Examination report of any tax return of an attorney, CPA, or enrolled agent, or of a return prepared by an attorney, CPA or enrolled agent where a Pre-filing Notification Letter was issued in connection with the tax shelter and the loss and/or credit from the promotion was nevertheless claimed on the tax return.

4.11.55.4.2.3  (01-15-2005)
Referral to OPR Procedures

  1. Once it has been determined that a referral is necessary, a referral package to the Office of Professional Responsibility must be prepared and closed separately from the related case. Include in the referral package:

    1. Completed Form 8484, Penalty Information Report to Office of Professional Responsibility, including status of the case (agreed, unagreed).

    2. A complete copy of the tax return.

    3. A complete copy of the RAR (including explanation of items and workpapers).

    4. Letters, Memoranda, copies of Form 2311 (Affidavit) or similar attested document, and Form 2797, Referral Report for Potential Fraud Cases, if applicable.

    5. Penalty summary from RGS.

    6. Form 2848, Power of Attorney, if available.

    7. Explanatory memorandum, which details all the pertinent facts. The actions of the return preparer must be described and documented in sufficient detail to develop a substantial position for disciplinary action. Include documentation and exhibits from the income tax file. Include a statement regarding the preparer's appearance before the Service (a record of contacts and activity of the preparer).

    8. Document the preparer's position, whether an appeal will be made, and the extent the preparer practices before the Service.

    9. The name and TIN of the related case(s) should be noted in the referral package.

  2. The Form 4318/4700A for the related income tax case should note the referral was prepared and forwarded to the Return Preparer Coordinator.

  3. In cases in which a referral is not prepared but was considered, a comment should be made on Form 4318/4700 explaining why the referral was not made.

4.11.55.4.2.4  (01-15-2005)
Routing of Referral to OPR

  1. The routing of the referral package depends upon the purpose of the referral. The referral requesting disciplinary action under Circular 230 is routed differently than a referral for information purposes.

  2. Circular 230 Action: Examiners will send referrals for Circular 230 action to the Office of Professional Responsibility on Form 8484, Penalty Information Report. It is routed through the Return Preparer Coordinator in PSP who forwards it to the Area Director.

  3. Informational Purposes: If the referral is for information and NOT for Circular 230 action, examiners will route Form 8484 through the Return Preparer Coordinator (RPC) who will send it directly to the Director of the OPR.

4.11.55.4.3  (01-15-2005)
Referrals of Unenrolled Preparers

  1. Disciplinary matters concerning unenrolled return preparers are under the jurisdiction of the Area Director. The privilege of limited practice without enrollment is extended to practitioners at the Area Director's discretion as outlined in Rev. Proc. 81-38. Examiners will continue to recognize the representative until a final determination of ineligibility has been issued by the Area Director and all appeals have been exhausted.

  2. The same high standards apply to unenrolled preparers as to attorneys, CPAs, and enrolled agents. Rev Proc 81-38 provides guidance in referring practitioners to the Area Director for purposes of determining their eligibility to exercise the privilege of limited practice before the IRS without enrollment.

4.11.55.4.3.1  (01-15-2005)
When Should A Referral Be Made To The Area Director?

  1. A referral to the Area Director is required when an unenrolled return preparer violates the provisions of Rev. Proc. 81-38.

  2. In accordance with this revenue procedure, an unenrolled return preparer shall act in a manner not to commit any act of disreputable conduct.

  3. Disreputable conduct includes, but is not limited to items contained in Section 10.51 of Circular 230.

4.11.55.4.3.2  (01-15-2005)
Procedures Making The Referral To The Area Director

  1. Any Service employee who has identified disreputable conduct by an unenrolled return preparer should communicate such information through proper channels beginning with his or her manager.

  2. If it is determined that a referral is warranted, a memorandum, signed by the group manager, outlining the facts as to why the preparer should be referred and supporting documentation will be routed to the RPC or the coordinator handling referrals of unenrolled preparers.

  3. After the coordinator has reviewed the memorandum and concurs, he/she will draft a memorandum to the Area Director outlining the specific references to Rev. Proc. 81-38 that have been violated and draft a letter to the preparer.

  4. When the Area Director receives this information and concurs that the preparer's actions are such that they may render the preparer ineligible to represent taxpayers without enrollment, he or she will issue a written notice to the unenrolled preparer stating the basis for the proposed determination of ineligibility.

  5. The notice will give the unenrolled preparer 30 days to request a conference.

  6. If the conference is not requested, or if a conference is held and the Area Director determines that the privilege of limited practice should be revoked, the Area Director will issue a notice to the unenrolled preparer that he or she is no longer eligible for the privilege of limited practice before the IRS.

  7. The Area Director's determination may be appealed to the Director of Compliance. An unenrolled preparer who wishes to appeal a Area Director's final determination of ineligibility may, within 30 days of receipt of the final determination, submit a signed, written appeal together with the preparer's reasons in support of it. Upon filing of the written appeal, and the reasons in support of it, the unenrolled preparer, upon request, will be afforded the opportunity of a conference with the Director of Compliance or the Director's designee. A decision will then be rendered by the Director of Compliance or the Director's designee affirming, reversing, or modifying the decision of the Area Director upon such terms and conditions as seem warranted under the facts and circumstances of the particular appeal. The decision of the Director of Compliance or the Director's designee on this appeal will be final.

    Reminder:

    Service employees will continue to recognize the representative until a final determination of ineligibility has been issued by the Area Director, and either the time for appeal has expired, or all appeals have been exhausted. Recognition will not be continued; however, where Service employees determine, or receive instructions from the Area Director or the Area Director's designee, that the representative should not be recognized because significant rights or interests of the taxpayer or Internal Revenue Service could be substantially harmed by continued recognition.

4.11.55.4.3.3  (01-15-2005)
Routing Referral Package to Area Director

  1. An employee who has identified disreputable conduct by an unenrolled return preparer should communicate such information through proper channels beginning with his/her manager to the Area Director.

  2. If it is determined that a referral is warranted, a memorandum, signed by the group manager, outlining the facts of why the preparer should be referred with any supporting documentation, will be routed to the Return Preparer Coordinator in PSP.

  3. After review and concurrence, the Coordinator will draft a memorandum to the Area Director outlining the specific references to Rev. Proc. 81-38 that have been violated.

  4. The Coordinator will draft a written notice for the Area Director's signature to be issued to the unenrolled return preparer which sets forth the proposed determination of ineligibility to appear as a taxpayer's representative.

4.11.55.5  (01-15-2005)
Centralized Authorization File (CAF)

  1. The Centralized Authorization File (CAF) contains information routinely recorded from Form 2848 or Form 8821 that is input when a POA or TIA is received.

  2. CAF numbers are assigned to representatives to help in the processing of POA's and TIA's. CAF numbers do not indicate that a representative is qualified to practice before the IRS.

4.11.55.5.1  (01-15-2005)
Before Requesting a POA - Check IDRS

  1. The CAF is an automated file containing information on the authority of representatives that will allow the Service to handle matters regarding authorizations and representatives quickly and efficiently. The CAF allows employees to identify representatives and the scope of their authority.

  2. Employees should check IDRS to see if there is a POA/TIA on file for the specific tax period for the taxpayer prior to asking the representative for a POA. The following codes on a transcript will reflect if a POA is on file:

    1. ENMOD - will display a "C" in the " CAF" indicator next to the SSN if a POA is present on at least one tax period.

    2. TXMODA - will display a "1" in the " CAF" indicator next to the ASED and CSED if a POA is on file for the tax period requested.

    3. Transaction Code 960 - will be present on a transcript of account if a POA is on file for the tax period required.

    Note:

    CFINQ must be requested for additional information.

4.11.55.5.2  (01-15-2005)
CFINQ

  1. The CAF contains taxpayer records regarding POAs on file with the Service. It contains the years for which POAs are on file for a given taxpayer.

  2. The IDRS command code (CC) that is input to access the tax periods for which a POA is present is "CFINQ" . The CFINQ command with the taxpayer's TIN will yield a listing of all years for which a POA is on file. IRM Exhibit 2.3.31–1 provides a description of all the information available via IDRS CC CFINQ and RFINQ, such as:

    1. Name and CAF number of the representative,

    2. Date the POA was signed,

    3. Lists the last action to CAF for this representative for this taxpayer,

    4. Type of Representative (Attorney, CPA, enrolled agent, etc.)

    5. Indicates whether the representative is authorized to receive correspondence,

    6. Indicates whether the duties the POA is authorized to perform have been changed or modified,

    7. Form number,

    8. Indicates whether it is a blind trust. Only one representative is authorized to receive confidential information,

    9. Indicates if the POA was submitted with the original filed return, and

    10. indicates whether the tax year on the Form 2848 or Form 8821 has been revised.

    Note:

    The output field tilted "SUPPRESSED" is for internal use in case there is a discrepancy with the information on IDRS. The representative will still receive all correspondence if the response is "Yes" or "No" .

  3. CFINQ input with the CAF Number of the representative will provide the following information:

    1. The first and second representatives' names,

    2. The representatives' addresses and telephone numbers,

    3. The date the POA was signed.

4.11.55.5.3  (01-15-2005)
RFINQ

  1. CAF contains representative records. It contains the name and address information for the representative. RFINQ is the IDRS command code used to access this information if the representative's CAF number is available. For a complete discussion of the use of this command code and the information available via this command code, see IRM 2.3.31.

Exhibit 4.11.55-1  (01-15-2005)
Glossary

Advocate - one who acts on behalf of the taxpayer in urging particular determinations with respect to issues or controversies.

Appointee - individual or entity named on a Tax Information Authorization (TIA); same as designee.

Attorney - any individual who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia.

Attorney-in-fact - an agent authorized by a principal under a Power of Attorney (POA) to perform a certain specified act(s) or kind of act(s) on behalf of the principal.

Blind Trust - a device used to give management of one's investments to an outside person over whom the beneficiary has no control.

Centralized Authorization File (CAF) - a computerized system of records which houses authorization information from both POAs and TIAs. The CAF system contains two types of records: taxpayer records (CAFT) and representative records (CAFR).

Circular 230 - Treasury Department Circular No. 230 (Subtitle A, 31 CFR Part 10), which sets forth the rules governing practice before the IRS.

Certified Public Accountant (CPA) - any person who is duly qualified to practice as a CPA in any state, possession, territory, commonwealth, or the District of Columbia.

Declaration of Representative - a recognized representative must attach to the POA a signed declaration (which may be made by completing Part II of Form 2848) stating the following:

  1. the representative is not currently under suspension or disbarment from practice before the IRS;

  2. the representative is aware of the regulations contained in Circular 230, concerning the practice of attorneys, CPAs, enrolled agents, enrolled actuaries, and others;

  3. the representative is authorized to represent the taxpayer(s) identified in the POA; and

  4. the representative is an individual recognized to practice before the IRS.

Delegation of Authority - an act performed by a recognized representative where authority given under a POA is delegated to another representative. After a delegation is made, both the original representative and the newly recognized representative to whom a delegation is made will be allowed to represent the taxpayer. The authority to delegate must be specifically stated on Form 2848.

Disbarment - a form of disciplinary action taken to preclude a representative from practice before the IRS. Representatives who are disbarred can no longer represent their clients before the IRS.

Designee - a person authorized by the taxpayer to receive the taxpayer's confidential tax return information.

Enrolled Actuary - any individual who is enrolled as an actuary by the Joint Board for the Enrollment of Actuaries under 29 USC 1242 and is in active status as such.

Enrolled Agent - any individual who is enrolled as an agent to practice before the IRS and is in active status pursuant to the requirements of Circular 230.

Fiduciary - a person acting on behalf of a taxpayer in one of the following capacities: guardian, executor, receiver, administrator, or trustee.

Form 2848 - Power of Attorney and Declaration of Representative. The IRS form that may be used by any taxpayer who wishes to appoint an individual to represent that taxpayer before the IRS.

Form 8821 - Tax Information Authorization. The IRS form on which taxpayers may authorize a designee to inspect and/or receive confidential tax information. The disclosure may be made to any individual, corporation, firm, organization, or partnership designated by the taxpayer.

Matter - the application of each tax for each taxable period imposed by the Internal Revenue Code and the governing regulations constitutes a separate matter.

Power of Attorney (POA) - a document signed by the taxpayer, as principal, by which an individual is appointed as attorney-in-fact to perform certain specified act(s) or kinds of act(s) on behalf of the principal. Specific types of POAs, other than the IRS Form 2848, Power of Attorney and Declaration of Representative, include the following:

  1. General POA - the attorney-in-fact is authorized to perform any or all acts the taxpayer can perform. This type of authorization is executed in accordance with State requirements. The language "any and all acts" includes conducting real estate transactions, making financial arrangements, taking legal actions, in addition to filing Federal tax returns and/or documents, and handling Federal tax matters.

  2. Durable POA - a document which specifies that the appointment of the attorney-in-fact will not end due to either the passage of time (i.e., the death of the taxpayer) or the incompetency of the taxpayer (e.g., the taxpayer becomes unable or is adjudged incompetent to conduct his/her business affairs).

  3. Limited POA - a document that is limited in any facet. The POA authorizes the attorney-in-fact to perform only certain specified acts.

Practice before the IRS - this encompasses all matters connected with a presentation of information to the IRS relating to a taxpayer's rights, privileges, or liabilities. These include preparation and filing of necessary documents, correspondence/communications with the IRS, and representation at conferences, hearings, and meetings. The preparation of tax returns or the furnishing of information at the request of the IRS does not constitute "practice before the Service" .

Practitioner - any individual authorized under section 10.3 of Circular 230 to practice before the IRS. Those authorized are attorneys, CPAs, enrolled agents, and enrolled actuaries.

Principal - a person (i.e., taxpayer) who appoints an attorney-in-fact under a POA.

Recognized Representative - an individual who is appointed as an attorney-in-fact under a POA and who is a member of one of the categories described in section 10.3 or 10.7 of Circular 230 and who files a declaration of representative.

Representation - acts performed on behalf of a taxpayer by a representative in practice before the IRS.

Specific Use POA or TIA - this refers to an authorization that is executed for a specific item and will not be recorded on the CAF. Examples of specific items include: civil penalty cases, 100% penalty cases, requests for private letter rulings, application for an employer identification number, and disclosure requests to release information to schools, universities, and mortgage companies.

Substitution of Representative - an act performed by an attorney-in-fact whereby authority given under a POA is transferred to another representative. After a substitution is made, only the newly recognized representative will be considered the taxpayer's representative.

Suspension - a form of disciplinary action prohibiting a representative from practice before the IRS. Representatives who have been suspended can not represent their clients before the IRS during the suspension period.

Tax Matter(s) - types of tax, tax form, and year or period.

Tax Information Authorization (TIA) - document, such as Form 8821, signed by the taxpayer authorizing the IRS to release confidential tax information to a designee. The designee may be an individual or entity (e.g., corporation, partnership, trust or organization).

Exhibit 4.11.55-2  (01-15-2005)
Other Documents

Publication 216 - Conference and Practice Requirements, 26 CFR, Part 601, Subpart E - These regulations supplement the provisions of Circular 230 regarding practice requirements and provide the rules for recognition of taxpayer representatives.

Rev. Proc. 68-29 - 1968-2 C.B. 913 - This revenue procedure concerns the extent to which IRS employees may accord " witness" recognition to persons acting on behalf of taxpayers. It also distinguishes between a person's activities as a witness and as a properly authorized taxpayer representative.

Rev. Proc. 81-38 - 1981-2 C.B. 592 - This revenue procedure implements the provisions of section 10.7(c) of Circular 230, regarding the circumstances and conditions under which an individual preparer of tax returns may exercise the privilege of limited practice without enrollment. Also see Publication 470.

Form 2848 - Power of Attorney and Declaration of Representative.

Form 8821 - Tax Information Authorization

Exhibit 4.11.55-3  (01-15-2005)
Form 2848 Specific Instructions

Line 1 - Taxpayer Information

  1. Individuals - Should contain name, SSN, individual TIN, and/or EIN, if applicable, and street address or post office box. Should not contain representative's address or post office box. If joint return is involved and the same representative(s) is designated for both spouses, the spouse's name, SSN, and address (if different) should be listed.

  2. Corporations, Partnerships, Associations - Should contain name, EIN, and business address. If a consolidated corporate return is involved, only the parent corporation information is required on line 1. Additionally, for line 3, only Form 1120 should be listed in the Tax Form Number column. A subsidiary must file its own Form 2848 for returns that must be filed separately from the consolidated return, such as Form 941, Employer's Quarterly Federal Tax Return.

  3. Employee Plan - Should contain the plan name, EIN of the plan sponsor, three-digit plan number, and business address of the sponsor.

  4. Trust - Should contain the name, title, and address of the trustee, and the name and EIN of the trust.

  5. Estate - Should contain the name, title and address of the decedent's executor/personal representative, and the name and identification number of the estate. The identification number for an estate includes both the EIN, if the estate has one, and the decedent's SSN or individual TIN.

Line 2 - Representative(s)

  1. Should contain the representative's full name. Only individuals may be named as representatives. The identical full name on all submissions and correspondence should be used. If the taxpayer wants to name more than three representatives, it should be so indicated on Line 2 and a list of additional representatives should be attached to the form.

    Note:

    Only the first three representatives listed will be input on the CAF.

  2. If a CAF number was previously assigned, it should be entered. The CAF number is not an indication of authority to practice.

Line 3 - Tax Matters

  1. The type of tax, the tax form number, and the year(s) or period(s) should be entered.

    Example:

    Income tax, Form 1040 for calendar year 2000 or Excise tax, Form 720 for the 1st, 2nd, 3rd, and 4th quarters of 2000

  2. Multiple years may be listed "2000 through (thru) 2002 " for income tax returns. For quarterly returns, the multiple periods should be listed "1st, 2nd, 3rd, and 4th quarters of 2000 through 2001"

  3. General references such as "All years" , " All periods" , or "All taxes" are not acceptable. A POA with such a general reference should be returned. Representation can only be granted for the years or periods listed on line 3.

  4. The taxpayer may list any tax years or periods that have already ended as of the date he/she signs the POA. A POA including future tax periods that end later than 3 years after the date the form is received by the IRS will not be entered into the CAF.

Line 4 - Specific Uses Not Recorded on CAF

  1. Generally, the IRS records POAs on the CAF system. A POA will not be recorded on CAF if it does not relate to a specific tax period or if it is for a specific issue.

  2. Examples of specific issues include, but are not limited, to the following:

    • Requests for a private letter ruling or technical advice,

    • Applications for an EIN,

    • Claims filed on Form 843, Claim for Refund and Request for Abatement,

    • Corporate dissolutions, and

    • Requests to change accounting methods or periods.

  3. Line 4 should be checked if the POA is for a use that will not be listed on the CAF.

    Note:

    A specific-use POA will not revoke any prior powers of attorney.

Line 5 - Acts Authorized

  1. Line 5 is used to modify the acts that a taxpayer's representative(s) can perform. In the space provided, the taxpayer should describe any specific additions or deletions.

    Example:

    The representative's authority to substitute another representative or to delegate authority must be specifically stated by the taxpayer on Line 5.

  2. Authority to sign the taxpayer's return - Treas. Reg. § 1.6012-1(a)(5) permits another person to sign a return for the taxpayer only in the following circumstances:

    1. Disease or injury,

    2. 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, or

    3. Specific permission is requested or and granted by the IRS for other good cause.

    Authority to sign the taxpayer's income tax return may be granted to the taxpayer's representative or an agent (a person other than the taxpayer's representative).

    Authorizing the representative: The taxpayer should write a statement on Line 5 that he/she is authorizing the representative to sign the income tax return pursuant to Treas. Reg. § 1.6012-1(a)(5) by reason of either (1), (2), or (3) listed above.

    Authorizing an agent: To authorize an agent to sign the tax return, the taxpayer must do all four of the following:

    1. Complete lines 1-3.
    2. Check the box on line 4.
    3. Write the following statement on Line 5:
    "This power of attorney is being filed pursuant to Treas. Reg. § 1.6012-1(a)(5), which requires a power of attorney to be attached to a return if a return is signed by an agent by reason of [enter the specific reason listed under (1), (2) or (3) above]. No other acts on behalf of the taxpayer are authorized" .
    4. Sign and date the form.

    Note:

    The agent does not complete Part II of Form 2848.

Line 6 - Receipt of Refund Checks

  1. If the taxpayer wants to authorize the representative to receive, but not endorse, refund checks on his/her behalf, he/she must initial and enter the name of that person in the space provided.

  2. Section 10.31 of Circular 230 prohibits an attorney, CPA or enrolled agent, any of whom is an income tax return preparer, from endorsing or otherwise negotiating a tax refund check that is not issued to him/her.

Line 7 - Notices and Communications

  1. Original notices and other written communications will be sent to the taxpayer and a copy to the first representative listed, unless the taxpayer checks one or more boxes on Line 7. See 4.10.11.8 for specific details on Line 7.

Line 8 - Retention/Revocation of Prior POAs

  1. If there is an existing POA that the taxpayer does not want to revoke, the box on Line 8 must be checked. Additionally, a copy of the existing POA should be attached. See 4.10.11.7 for specific details on revocations.

Line 9 - Signature of Taxpayer(s)

  1. Individuals: Must sign and date the POA. If a joint return is involved and both spouses will be represented by the same individual(s), both must sign and date the POA. If the spouses will be represented by different individuals, each spouse must execute his/her own POA on a separate Form 2848.

  2. Corporations or Associations: An officer having authority to bind the taxpayer must sign.

  3. Partnerships: All partners must sign unless one partner is authorized to act in the name of the partnership. A partner is authorized to act in the name of the partnership if, under state law, the partner has authority to bind the partnership. The TMP is authorized to act in the name of the partnership for purposes of signing the Form 2848.

  4. All Others: If the taxpayer is a dissolved corporation, decedent, insolvent, or a person for whom or by whom a fiduciary (trustee, guarantor, receiver, executor, or administrator) has been appointed, see Treas. Reg. § 601.503(d).

Part II - Declaration of Representative

  1. The representative must sign and date the declaration and enter the designation under which he/she is authorized to practice before the IRS.

  2. In the "Jurisdiction" column, the representative must list the designation (a-h) indicated on the form as:

    • a. Attorney - The two-letter abbreviation for the state in which admitted to practice.

    • b. CPA - The two-letter abbreviation for the state in which licensed to practice.

    • c. Enrolled Agent - The enrollment card number issued by the Office of Professional Responsibility.

    • d. Officer - The title of the officer (e.g., President, Vice President, Secretary).

    • e. Full-Time Employee - The title or position (e.g., Comptroller or Accountant).

    • f. Family Member - The relationship to the taxpayer (must be a spouse, parent, child, brother or sister).

    • g. Enrolled Actuary - The enrollment card number issued by the Joint Board for the Enrollment of Actuaries.

    • h. Unenrolled Return Preparer - The two-letter abbreviation for the state in which the return was prepared.

    Note:

    Any individual may represent any individual or entity, who is outside the United States, before personnel of the IRS when such representation takes place outside the United States. Individuals acting as representatives must sign and date the declaration, leaving the Designation and Jurisdiction information blank. See section 10.7(c)(vii) of Circular 230.


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