Navigating Tax Representation: Who Can Help?

When facing tax problems, individuals and businesses often need professional representation. The IRS allows certain qualified individuals, like attorneys, CPAs, and enrolled agents, to represent taxpayers.

IRS Form 2848: Power of Attorney

  • Purpose: This form grants a designated individual the authority to represent you before the IRS.
  • Scope: The representative can receive confidential tax information and act on your behalf in IRS matters.
  • Limitations: The form specifies the tax matters and years for which they’re authorized.

IRS Form 8821: Tax Information Authorization

  • Purpose: This form authorizes individuals to inspect and receive confidential tax information but doesn’t allow them to represent you before the IRS.
  • Usage: It’s often used by tax professionals to obtain information necessary to analyze and resolve tax issues.

Differences Between Forms 2848 and 8821

  • Representation Rights: Form 2848 allows representation in IRS disputes; Form 8821 only allows access to information.
  • Scope of Authority: Form 2848 is broader in terms of actions the representative can take on your behalf.

Choosing the Right Form

Selecting the appropriate form depends on your needs. If you require someone to act on your behalf in disputes or negotiations with the IRS, Form 2848 is necessary. For professionals who only need to review your tax records to provide advice, Form 8821 is sufficient.

Kick Tax Pro Assistance

At Kick Tax Pro, we can help you determine which form is suitable for your situation and assist in filling out and submitting these forms to ensure you get the representation you need.