An important part of estate planning is designating a power of attorney; however, the IRS will not discuss your taxes or identity with anyone without your authorization. Recently, the IRS has made it easier for taxpayers to quickly review, approve and sign power of attorney and tax information authorization requests through their IRS Online Account.

What is Power of Attorney?

Power of attorney allows someone to represent a taxpayer in tax matters before the IRS. Taxpayers may choose to represent themselves before the IRS, or authorize someone to represent them. If they choose to have someone represent them, the representative must be an individual authorized to practice before the IRS such as an enrolled agent.

Taxpayers should use Form 2848, Power of Attorney and Declaration of Representative if they want to authorize an individual to represent them before the IRS. Certain tax professionals can use their Tax Pro Account to submit a power of attorney authorization request to access a taxpayer's online account. The taxpayer can log into their Online Account to review, electronically sign and manage authorizations.

Once a taxpayer has signed a power of attorney, the authorized person can:

  • Represent, advocate, negotiate, and sign on the taxpayer's behalf.
  • Argue facts and the application of law.
  • Receive the taxpayer's tax information for the matters and tax years or periods the taxpayer specifies.
  • Receive copies of IRS notices and communications if the taxpayer chooses.

Taxpayers can ask an eligible tax professional to use a Tax Pro Account to submit the request to their Online Account.

Tax Information Authorization

Taxpayers can also approve a tax information authorization submitted through Tax Pro Account in their individual Online Account. With real-time processing, Tax Pro Account lets you submit an electronically signed authorization request in 15 minutes or less. A tax information authorization allows the taxpayer's appointed designee to review or receive the taxpayer's confidential information verbally or in writing for the tax matters and years or periods, the taxpayer specifies.

It also allows taxpayers to disclose their tax information for a purpose other than resolving a tax matter, such as, for example, providing income verification needed by a lender or a background check.

Please contact the office if you need assistance with this or any other tax matters affecting you and your family. Help is just a phone call away.