Representing taxpayers and withdrawing from representation.

• Author: Michnay, Ruth Ann

The regulations to represent or practice before the IRS are published in Circular 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers before the Internal Revenue Service (31 CFR Part 10) and the Statement of Procedural Rules (Sections 601.501-601.509). "Any CPA who is not currently under suspension or disbarment from practice before the IRS and who is duly qualified to practice as a CPA in any state, possession, territory, commonwealth, or in the District of Columbia may practice before the IRS"; see Pub. 947, Practice Before the IRS and Power of Attorney. The CPA must be designated as the taxpayer's representative or power of attorney (POA) and file Form 2848, Power of Attorney and Declaration of Representative, or a written declaration with the IRS, stating that he or she is authorized and qualified to represent a particular taxpayer.

To Represent

To discuss or to correspond with the IRS on a taxpayer's behalf, a CPA has four options to submit Form 2848.

1. Mail or fax a signed form to the IRS Centralized Authorization File (CAF) at the address or fax number in Pub. 947 (both the taxpayer and tax representative must sign and date the form). The IRS will process the authorization within two to seven days. Once the information is entered in the CAF system, the CPA will be able to have discussions and correspond with the IRS.

2. Telephone the IRS Practitioner's Hotline ((866) 860-4259) to discuss an "account related" item. Before any discussion ensues, however, the CPA enters the taxpayer's Social Security number via a touchtone telephone keypad. On connecting to an IRS agent, a fax number will be given to submit Form 2848. The CPA stays on the line while the IRS agent receives the fax and prepares to discuss the taxpayer. At the completion of the call, the CPA may request to have Form 2848 submitted to the CAF system. Note: This may not always get accomplished, and the CPA will have to use another method to have the form processed.

3. Call the telephone number listed on the taxpayer's correspondence and fax Form 2848 immediately. This option is not always available, however, because certain IRS centers do not have this capability. An agent will ask the representative to fax the form to the CAF system and to call the same telephone number in a few days.

4. Use E-Services. A CPA must be an authorized E-services provider to assess this option. Information from the...