WORKING WITH YOUR CPA · 4 MIN READ
What Is a Power of Attorney—Form 2848—and Why Does My Tax Advisor Need One?
By Hevia & Hevia CPA Firm · Published
Reviewed by Alexander Hevia, CPA, J.D., LL.M. (Taxation) —
IRS Form 2848 allows you to authorize an eligible professional to represent you before the IRS for specified tax matters and periods. It also permits that representative to receive and inspect the confidential tax information covered by the authorization. IRS: About Form 2848
For many clients, it is a practical step toward getting professional help with an IRS issue.
Why does my advisor need authorization?
Hiring someone to prepare your tax return does not automatically authorize that person to represent you before the IRS.
Your advisor may need Form 2848 to communicate with the IRS on your behalf, investigate an account issue, respond to a proposed adjustment, or assist with an examination.
For example, suppose you receive a notice showing unpaid taxes, but your records indicate that you already paid. An authorized representative can review the relevant account information and communicate with the IRS about the discrepancy.
The authorization allows your advisor to work directly on the covered matter instead of relying entirely on you to relay information.
What authority does Form 2848 provide?
Within its stated scope, Form 2848 generally allows your representative to receive confidential tax information and perform authorized acts before the IRS. Those acts can include signing certain agreements, consents, or other documents.
The form identifies the representative, the tax matters, and the years or periods covered. Review those entries and any additional authorizations or restrictions before signing.
Form 2848 concerns IRS representation; it does not grant general control over your bank accounts, property, or personal affairs. It also does not authorize your representative to endorse or negotiate your federal tax refund. Authority to sign a tax return is restricted to limited circumstances and requires specific authorization. IRS: Form 2848 instructions
Who can represent me?
The person you authorize must be eligible to practice before the IRS. CPAs, attorneys, and enrolled agents are common examples of professionals who may serve as representatives, subject to applicable requirements.
Form 2848 names individual representatives rather than simply appointing an accounting firm. IRS: About Form 2848
How is it different from other authorizations?
The appropriate authorization depends on what your advisor needs to do.
| Authorization | Main purpose |
|---|---|
| Form 2848—Power of Attorney | Authorizes an eligible individual to represent you before the IRS within the specified scope. |
| Form 8821—Tax Information Authorization | Allows access to specified confidential tax information, without authorizing representation. |
| Third-party designee on a tax return | Permits limited discussion of that particular return, such as certain processing, payment, or refund questions. |
If your advisor only needs information, Form 8821 may be sufficient. It does not provide the representation authority of Form 2848. IRS: About Form 8821
The third-party designee option on a return is also narrower than a power of attorney and generally expires one year after the return’s original due date. IRS: Power of attorney and other authorizations
Does signing mean something is wrong?
No. An advisor may request authorization when a specific issue arises or as part of an agreed service arrangement so that assistance is available when needed.
Ask what work the authorization supports and how it relates to your engagement. Signing Form 2848 does not, by itself, establish which services are included in your fee.
Can I revoke the authorization?
Yes. You can revoke a power of attorney by following the IRS’s procedures. Your representative can also withdraw.
For a joint income tax matter, each spouse who wants representation generally must execute a separate Form 2848. Authorizing a representative does not remove your own tax obligations. IRS: Form 2848 instructions
How can our firm help?
Hevia & Hevia CPA Firm helps businesses and families understand their tax obligations and the steps needed to address questions involving their returns.
If we request Form 2848, we can explain the matters covered, the representatives named, and how the authorization supports the work we have agreed to perform.
Contact our team to discuss your circumstances.
FURTHER READING