A Step-by-Step Guide to Completing Form 2848 for Enrolled Agents

Form 2848, Power of Attorney and Declaration of Representative

Form 2848, Power of Attorney and Declaration of Representative, is what gives Enrolled Agents access to speak to the IRS on their client's behalf. Taxpayers use this form to inform the IRS that they have authorized a tax professional to represent them. Without a Form 2848, you cannot pull a taxpayer's transcripts or discuss their account.

Getting the 2848 completed and signed is the first step to representing a taxpayer after getting paid. Having it filled out incorrectly can not only get the IRS to hang up on you but also hold up your attempt to help a taxpayer with their problem. So let's make sure you get it right the first time.

In this article, we are going to go step-by-step on how to fill out each line of Form 2848 after a brief discussion on what it is. I've done a video on YouTube (below) where I review the form, but there are no lines filled out. In this article, you will get an idea of where everything goes from the examples in the illustrations.

YouTube video of Timalyn reviewing Form 2848

What is Form 2848?

Form 2848 authorizes an individual to represent a taxpayer before the IRS. That person must be eligible to represent taxpayers before the IRS. The type of individuals authorized to represent taxpayers is in Part II, Declaration of Representative. The three tax professionals whom the IRS gives unlimited representation rights to are:

- Certified Public Accountants (CPAs)

- Enrolled Agents (EAs)

 - Tax Attorney

If a tax professional did not prepare the return in question and is not one of the above, they may still be able to access a taxpayer's account. They can do so by using Form 8821, Tax Information Authorization.

Note: I have written a step-by-step guide to filling this form out as well. At the end, there is a mini-class via video of me filling it out that you can watch. Form 8821: A Step-by-Step Guide

Below is a free video overview of Form 8821.

Form 2848 gives unlimited authority to inspect and receive confidential tax information of the taxpayer listed. The authority can also perform certain acts, such as negotiating the tax debt, removing penalties, and requesting more time.

Form 2848 Instructions

For each section, I have included a picture to help you see what I am referring to in the instructions. Filing this form with the CAF unit by mail, fax, or online will revoke any prior powers of attorney for this taxpayer.

Part I - Power of Attorney

This section identifies who the taxpayer is and who they are authorizing to act as their representative. More than one representative may be on the form. It also specifies the tax matters the representative has the authority to access and discuss. In addition to that, if there is anything not authorized, that is also notated.

The final part of this section is where the taxpayer signs. This is their declaration that they are giving the person(s) named on the form the authority to represent them before the IRS.

Line 1 - Taxpayer Information

This is where the taxpayer's personal identifying information goes. Such as their name, address, and social security number. This could be an individual, business, or trust. The name must match what they have on their tax return. For married taxpayers, I have found it best practice to know what their maiden name(s).

When verifying their identity with the IRS agent, they may ask you what their former name was. The same is true with addresses. Ask the taxpayer if they recently changed addresses. If so, you will want the address they used to file their last tax return.

When you provide the updated address, this will not change; update it within the IRS system. The taxpayer will still need to fill out a change of address form. This is Form 8822 for individuals and Form 8822-B for businesses.

If you are working with a married couple, you need a 2848 for each taxpayer. If the taxpayer is also a sole proprietor with an EIN you will want to also list the name of their business and EIN. This way, you will be able to access anything in relation to the EIN as well as the Social Security number.

As the taxpayer's power of attorney, you will want to protect them. On the daytime telephone number line, you may put your phone number with POA in parentheses.

Line 2 - Representative

This is where you'll enter your name and the address of the form you are working on for this case. Only individuals who are eligible to practice before the IRS may be here on line 2. We'll review who those people are later in this article under the Declaration of Representative.

If the taxpayer authorizes you to receive copies of all notices and communications, you must check the box provided under your name and address. Please note, the taxpayer will still receive these notices. It may take up to 45 days before you start receiving them. I always request that my clients reach out to me to make sure I have received a copy of the notice that they have received.

Only two representatives may receive copies of letters and notices. No firm may be on line 2 as a representative. It may only be an individual.

List your 9-digit CAF number. If you do not have one yet, write "none" and the IRS will issue one to you. If you cannot remember your CAF number, you can call the practitioner priority service (PPS) at 1-866-860-4259. They can assist you with finding your number.

You will also need to enter your preparer tax identification number (PTIN), phone number, and fax number.

Note: students working in a low-income tax clinic (LITC) or student tax clinic program (STCP) can also represent taxpayers under the supervision of a lead CPA or Attorney. When that is the case, they must put the lead professional's information here. Then they will put their's under.

Line 3 - Acts Authorized

You must enter the description of the tax matter, tax form, and the year(s)/periods. This can seem confusing when you are initially starting, but let me explain.

If you have a client who has income tax debt for tax year 2024, you would put the following:

• Description of matter - Income

• Tax Form - 1040

• Year - 1/01/2024 - 12/31/2024

  
  

However, let me encourage you not to just put the year/period in question. If your client filed late, they will have a failure to file penalty, which could be eligible for first-time penalty abatement. You won't be able to research this yourself if you don't have the prior 3 years listed on your 2848.

I typically will go 10 years back from the last year they suspect debt, and 3 years forward. This way, I can conduct a transcript investigation and make sure there are no skeletons hiding. It also lets me see patterns and if they are eligible for other penalty abatement.

The IRS will not allow you to do anything that exceeds 3 years from December 31st of the year you request that your POA be on file.

You can list more than one type of tax matter on the POA. For example, if you are working with an individual who is a sole proprietor, there may also be employment and civil penalty tax matters you need to look at.

You would list the tax matters separately on their own rows as "Employment Tax" and "Civil Penalty". Remember, in a situation where you are representing a married couple, you will need a separate power of attorney on file for each of them.

Line 4 - Specific Use Not Recorded on CAF

A specific use power of attorney does not necessarily relate to a specific time period or matter. It can be a one-time use, and it is not recorded like typical 2848s are. It also will not revoke any prior 2848s filed. If you are filing this for one of those reasons, you must describe it briefly in section 3.

Some of the reasons for specific use that the IRS has listed in the instructions include, but are not limited to:

- Application for Award for Original Information under §7623

- Application for an EIN

- Applications for exemption from self-employment tax filed on Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners.

- Applications for ITIN filed on Form W-7, Application for IRS Individual Taxpayer Identification Number.

- Circular 230 Disciplinary Investigations and Proceedings

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

- Corporate dissolutions

- Freedom of Information Act (FOIA) requests

- Requests to change accounting methods or periods

- Request for the determination of the qualified status of an employee benefit plan

- Requests for a private letter ruling or technical advice

- Voluntary submissions under the Employee Plans Compliance Resolution System (EPCRS)

Line 5a - Additional Acts Authorized

This line allows you to add more acts to your authorization. Each of these things are important and you should understand them before you check or don't check the boxes.

The authority to access electronic IRS records via intermediate service providers is very important. If you use any type of software to pull your client's transcripts, you must have this box checked. It is also good practice to disclose to them that you will be using a service to access their transcripts.

I do this by also including a consent form that meets the specifications of §7216 in my onboarding paperwork. I use Pitbull to access transcripts and do evaluations so I make my clients aware of this upfront.

If this box is not checked you are only permitted to access their information via the transcript delivery system. That is okay, and it is okay to not have software if you are just starting out. I walk you through how to pull those transcripts with the TDS in the Back Tax Negotiation Workshop.

Substituting or adding a representative gives you permission to file a new Form 2848 to give another tax professional access to the taxpayer's information via the IRS. You can do this by signing the new 2848 and submitting it with a copy of the taxpayer's written permission.

Disclosure of returns to a third party gives you permission to disclose the taxpayer's information to someone other than them. I typically don't check this box in my practice to protect the privacy of my client. If a third party needs the information, I always provide it to my client so they can provide it to that third party themself.

Authority to sign a return gives you the power to sign a tax return/form on behalf of the taxpayer. I do not check this box either. This is a personal choice of mine, so that the client knows that I am not submitting anything without their consent.

There are certain scenarios where you may want to check this box. Such as if your client is an expat, has a disease or injury, etc.

You can add anything else your client may want you to do to this line as well.

Line 5b - Specific Acts Not Authorized

This is where you'll list any acts that your client does not want you to do on their behalf.

Line 6 - Retention/Revocation of Prior Power of Attorney

When you file a power of attorney for a client, it will revoke an earlier filed power of attorney on file with the CAF unit if it is for the same tax matter(s). Check this box and attach a copy of the previously filed power of attorney to prevent the IRS from revoking it.

Filing a 2848 will not revoke a previously filed Form 8821.

Line 7 - Signature of Taxpayer

This is where the taxpayer signs to give you the authority and/or restrictions listed on the form. The signature of the taxpayer must be handwritten if you are mailing or faxing the form.

An electronic signature is acceptable if you plan to upload the 2848 online using your Tax Pro account. But keep in mind, if you call PPS and they cannot find your 2848 on file and request you to fax it, they will not accept the copy with the digital signature.

For individuals, they must sign and date the form. The taxpayer must be 18 years of age or older. If they are a minor, their parent or court-appointed guardian may sign for them.

For corporations or associations, an officer with legal authority to bind the corporation may sign. For partnerships, all partners must sign and enter their titles. If the partnership has authorized one partner to act on their behalf, they may sign their title.

Generally, you will have your client sign the form first. If they are in the United States, you must sign within 45 days of the date they signed. If they are not in the United States, you must sign it within 60 days. If you sign it first, the taxpayer does not have a time limit for signing.

Part II - Declaration of Representative

As I mentioned before, the IRS only gives certain tax professionals the authority to represent taxpayers. Even if they have the correct license, they still must be eligible to represent clients before the IRS. This professional must fill out this section under penalties and perjury, agreeing to the following:

- They are not currently suspended, disbarred from practice, or ineligible to practice before the IRS

- Agreeing that they are subject to the regulations of Circular 230

- The taxpayer listed on the form has authorized them to represent them

- They are one of the people listed on the form who may represent the taxpayer

Form 2848 lists 10 different categories of people who may represent a taxpayer. When filling out this section of the form, you will list your designation as an Enrolled Agent as "c".  Your licensing jurisdiction is "IRS," and then you will put your enrollment number in the next section. After that, you will sign and date the form.

Here are all the people who the IRS says may represent a taxpayer. Please note that an unenrolled preparer may represent the taxpayer in a limited way with special instructions. They may only represent the taxpayer on a tax matter on a tax return that they prepared and signed.

a) Attorney

b) Certified Public Accountant

c) Enrolled Agent

d) Officer

e) Full-time employee

f) Family member - limited to spouse, parent, child, brother, sister, grandparent, grandchild, step-parent, step-child, step-brother, or step-sister.

g) Enrolled Actuary

h) Unenrolled Return Preparer

k) Qualifying Student or Law Graduate

r) Enrolled Retirement Plan Agent

Now It's Your Turn

Please note that this form is not valid unless each section is properly completed. It must also be signed and dated by both you and the taxpayer. If you need guidance on what to expect on your first call with the IRS with a 2848, check out: How to Conduct a Transcript Investigation.

If you'd like to join a community of Enrolled Agents and Aspiring Enrolled Agents who are building their firms together, you can join my free community here: How to Start an Enrolled Agent Firm.

1 - After reading this article, on a scale of 1 -10, how comfortable do you feel with filling out a Form 2848?

2 - Now that you know how to fill out the 2848, you can send it to the CAF unit and get started helping taxpayers. Do you know how to pull the taxpayer's transcripts and read them? If not, the Back Tax Negotiation Workshop is on sale right now. Purchase lifetime access to the course here: Back Tax Negotiation Workshop.

3 - Sometimes the client comes before you know what you're doing. If that's the case, I am here to offer you support. Don't miss out on the opportunity to help taxpayers and learn because you are afraid. You will have to go through the process multiple times before you have it mastered. Just like lifting weights, it takes reps to build that muscle.

Here is your invitation to join the monthly mentorship today!

---

Timalyn S. Bowens, EA, is America's Favorite EA and Tax Expert who will work hard to find a customized legal solution for you! As an Enrolled Agent licensed through the Internal Revenue Service, Timalyn can fight the IRS for taxpayers in all 50 states. As the host of Tax Relief with Timalyn Bowens and a YouTube content creator, she empowers taxpayers to make educated decisions about their tax situation.

When you are facing questions regarding your personal or business taxes, working with a professional makes all the difference. At Bowens Tax Solutions, we serve our Louisville-area neighbors by providing the tax services and knowledge needed to succeed. We are here to assist you with your tax issues and preventative care. Visit our website at www.bowenstaxsolutions.com for more information.