Filing a Power of Attorney With the IRS: Why It’s Worthwhile And How to Get Started

Working with a tax professional can save you a lot of aggravation as you bring your IRS issues to a close. Before you pursue this path, however, you’ll need to authorize an enrolled agent or other tax professional to represent you in your dealings with the IRS.

This process is formalized via a solution known as the power of attorney. It’s completed by submitting IRS Form 2848. Officially known as the Power of Attorney and Declaration of Representative, this document serves as a key step on the path to forming a positive working relationship with an enrolled agent.

How to Complete IRS Form 2848

If you and your spouse intend to use the same representative, you may still need to file separate powers of attorney. Essential details required before you submit this document include:

  • Contact information for both the taxpayer and the representative
  • Acts authorized (such as signing agreements or providing disclosures to third parties)
  • Acts that are not authorized (such as endorsing checks)

At this point, you can also revoke any previous powers of attorney you’ve granted. Conversely, you can designate whether you’d like for any current powers of attorney to remain in effect.

What About Form 8821?

The IRS also provides the opportunity to have a tax professional review your information without actually representing you before the agency. Known as Form 8821, this document is sometimes completed prior to working closely with an enrolled agent. If you submit Form 2848, however, your representative will automatically receive access to confidential tax information.

Not sure whether you’re ready to move forward with granting power of attorney? Our team at the Highland Tax Group will provide the information and reassurance you need. Contact us today to learn more about the process of working with an enrolled agent.