Tax Seminar #3 – December 3 2012

Excerpts from the Internal Revenue Manual at www.irs.gov
21.3.7.1 (11-17-2010) Third Party Authorization
3. Different types of authorization authority are:
Representative - An individual that the taxpayer has authorized to represent them before the
IRS on a valid Form 2848, Power of Attorney and Declaration of Representative or Form
706, U.S. Estate Tax Return.
Appointee - An individual person or business entity the taxpayer appoints to receive and
inspect confidential tax return information on a valid Form 8821, Tax Information
Authorization.
Designee - An individual person that has been designated to receive and inspect confidential
tax return information through Oral Disclosure Consent (ODC) via telephone or Checkbox
election on a tax return.
21.3.7.5 (11-17-2010)
Form 2848, Power of Attorney and Declaration of Representative and
Form 8821, Taxpayer Information Authorization Overview
1. Form 2848, Power of Attorney and Declaration of Representative can only be granted to an
individual eligible to practice before the Internal Revenue Service (e.g., Attorney, CPA or
Enrolled Agent). For information on Powers of Attorney see IRS Publication 947,
Practice Before the IRS and Power of Attorney.
2. Form 8821, Tax Information Authorization, or equivalent, can appoint any third party to
receive and inspect account information for the tax matter(s) specified.
EMD COMMENT: Form 8821,Tax Information Authorization, or equivalent, can designate
any third party to receive and inspect account information for the tax matter(s) specified.
• Can be granted to an individual.
•
Can be granted to a business entity or firm (legal, accounting, tax preparation,
etc). When a business is the appointee, authority extends to the employees of
the business.
21.3.7.5.1 (09-23-2011) Essential Elements for Form 2848 and Form 8821
1. There are five essential elements needed to process the Form 2848 and/or Form 8821...
4. Essential elements are:
A. Essential element 1 The taxpayer's dated signature is required. An electronically signed,
printed or stamped signature is not acceptable..
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