Any attorney who is not currently under suspension or disbarment from practice before the IRS and who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or of the District of Columbia may practice before the IRS.

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.

Any enrolled agent in active status may practice before the IRS.

Any individual who is enrolled as an actuary by the Joint Board for the Enrollment of Actuaries may practice before the IRS. The practice of enrolled actuaries is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans.

Any individual other than an attorney, CPA, enrolled agent, or enrolled actuary who prepares a return and signs it as the return preparer is an unenrolled return preparer. Also, any individual who prepares a return and is not required to sign it as the preparer is considered to be an unenrolled preparer.

Unenrolled return preparers are limited in their practice before the IRS.

An unenrolled return preparer may represent the taxpayer only concerning the tax liability for the year or period covered by the return that he or she prepared. The unenrolled return preparer is only permitted to represent taxpayers before the examination function of the IRS and is not permitted to represent taxpayers before the Appeals, Collection, or any other function of the IRS.

Unenrolled return preparers cannot perform the following activities for another taxpayer.

For more information on these limits, see Revenue Procedure 81–38.

Any individual engaged in limited practice before the IRS who is involved in disreputable conduct is subject to disciplinary action. Disreputable conduct includes, but is not limited to, the list of items under Disreputable Conduct shown later under What Are the Rules of Practice.

Because of their special relationship with a taxpayer, the following unenrolled individuals can represent the specified taxpayers before the IRS, provided they present satisfactory identification and, except in the case of an individual described in (1) below, proof of authority to represent the taxpayer.

These organizations (or persons) are not eligible to practice before the IRS.

Enrolled agents who fail to comply with the requirements for eligibility for renewal of enrollment will be notified by the Director of Practice through first class mail. The notice will explain the reason for noncompliance and provide the enrolled agent with an opportunity to furnish information for reconsideration. The enrolled agent has 60 days to respond.

An enrolled agent will be placed on the roster of inactive enrolled individuals for a period of three years, if he or she:

The enrolled agent must file an application for renewal and satisfy all requirements for renewal within 3 years of being placed on the roster. After 3 years, he or she will be removed from the roster and the enrollment terminated.

Enrolled agents who request to be placed in an inactive retirement status will be ineligible to practice before the IRS. They must continue to adhere to all renewal requirements. They can be reinstated to an active enrollment status by filing an application for renewal of enrollment and providing evidence that they have completed the required continuing professional education hours.

Individuals authorized to practice before the IRS are subject to disciplinary proceedings and may be suspended or disbarred for violating any regulation governing practice before the IRS. This includes committing acts of disreputable conduct. For more information, see Disreputable Conduct under What are the Rules of Practice, later.

Practitioners who are suspended in a disciplinary proceeding are not allowed to practice before the IRS during the period of suspension. See What Is Practice Before the IRS, earlier.

Practitioners who are disbarred in a disciplinary proceeding are not allowed to practice before the IRS. However, a practitioner can seek reinstatement from the Director of Practice five years after disbarment.

If the practitioner seeks reinstatement, he or she may not practice before the IRS until the Director of Practice authorizes reinstatement. The Director of Practice may reinstate the practitioner if it is determined that:

If an enrolled agent is suspended or disbarred, he or she is required to surrender his or her enrollment card during the suspension period or for cancellation.

Applicants can apply to take the special enrollment examination by filing Form 2587, Application for Special Enrollment Examination. Part 4 of the form should be mailed with the examination fee to the address shown on the form. The amount of the fee is also shown on Form 2587. The form is revised annually and is available in mid-June each year. The form must be postmarked no later than July 31. To obtain Form 2587, see How To Get Tax Help, later.

Individuals who have passed the examination or are applying on the basis of past service and technical experience with the IRS can apply for enrollment by filing Form 23, Application for Enrollment to Practice Before the Internal Revenue Service, with the Director of Practice. The application must include a check or money order in the amount of the fee shown on Form 23. To obtain Form 23, see How To Get Tax Help, later.

An enrollment card will be issued to each individual whose application is approved. The individual is enrolled until the expiration date shown on the enrollment card. To continue practicing beyond the expiration date, the individual must request renewal of the enrollment.

Applicants for renewal of enrollment must file Form 8554, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service. To qualify for renewal, applicants generally must complete 72 hours of continuing professional education during each 3-year enrollment cycle. See Form 8554 for more information. To obtain Form 8554, see How To Get Tax Help, later.

The confidentiality protection for certain communications between a taxpayer and an attorney (privileged communications) applies to similar communications between a taxpayer and any federally authorized tax practitioner.

Federally authorized tax practitioners include attorneys, certified public accountants, enrolled agents, enrolled actuaries, and certain other individuals allowed to practice before the IRS.

This confidentiality privilege cannot be used in any administrative proceeding with an agency other than the IRS.

The protection of this privilege applies only to tax advice given to the taxpayer by any individual who is a federally authorized tax practitioner. Tax advice is advice in regard to a matter that is within the scope of the practitioner's authority to practice. The confidentiality protection applies to communications that would be considered privileged if they were between the taxpayer and an attorney and that relate to noncriminal:

This protection of tax advice communications does not apply to any written communications between a federally authorized tax practitioner and a director, shareholder, officer, employee, agent, or representative of a corporation. It also does not apply if the communication involves the promotion of the direct or indirect participation of the corporation in any tax shelter.

A practitioner who knows that his or her client has not complied with the revenue laws or has made an error or omission in any return, document, affidavit, or other required paper, has the responsibility to advise the client promptly of the noncompliance, error, or omission.

A practitioner must exercise due diligence when performing the following duties.

A practitioner must not unreasonably delay the prompt disposition of any matter before the IRS.

A practitioner must not knowingly, directly or indirectly, do the following.

A practitioner who is a notary public and is employed as counsel, attorney, or agent in a matter before the IRS, or has a material interest in the matter, cannot engage in any notary activities related to that matter.

Practitioners who are income tax return preparers must not endorse or otherwise negotiate (cash) any refund check issued to the taxpayer.

Any representative, other than an unenrolled preparer, can usually perform the following acts.

The representative named under a power of attorney is not permitted to sign your personal income tax return unless both of the following are true.

For example, the regulation permits a representative to sign your return if you are unable to sign the return for any of the following reasons.

When a return is signed by a representative, it must be accompanied by a power of attorney (or copy) authorizing the representative to sign the return. For more information, see the Form 2848 instructions.

If you want your representative to receive a refund check on your behalf, you must specifically authorize this in your power of attorney as discussed earlier under Acts performed. However, if your representative is permitted to practice before the IRS, he or she cannot be authorized to endorse or otherwise cash your check related to income taxes. If you want someone else to endorse or cash that check, follow the rules in Treasury Department Circular No. 21, as amended, 31 CFR part 240. To get a copy of this, select the Code of Federal Regulations under Access to Government Information Products, at www.gpo.gov.

The recognized representative can substitute or delegate authority under the power of attorney to another recognized representative only if the act is specifically authorized under the power of attorney.

After a substitution has been made, only the newly recognized representative will be recognized as the taxpayer's representative. If a delegation of power has been made, both the original and the delegated representative will be recognized by the IRS to represent the taxpayer.

A power of attorney is generally terminated if you become incapacitated or incompetent.

The power of attorney can continue, however, in the case of your incapacity or incompetency if you authorize this on the Form 2848, or if your non-IRS durable power of attorney meets all the requirements for acceptance by the IRS. See Non-IRS powers of attorney, later.

Use Form 2848 to appoint an unenrolled return preparer as your representative.

The authority of the unenrolled preparer is limited as described in Revenue Procedure 81-38. The unenrolled preparer can represent you only before revenue agents and examining officers of the Examination function of the IRS. The representation can only concern your tax liability for the period(s) covered by the return(s) he or she prepared. For more information about the limitations on unenrolled return preparers, see Limited practice under Who Can Practice Before the IRS, earlier.

The IRS will accept a non-IRS power of attorney, but a completed transmittal Form 2848 must be attached in order for the power of attorney to be entered on the Centralized Authorization File (CAF) system. For more information, see Processing a non-IRS power of attorney, later.

If you want to use a power of attorney document other than Form 2848, it must contain the following information.

You also must attach to the non-IRS power of attorney a signed and dated statement made by your representative. This statement, which is referred to as the Declaration of Representative, is contained in Part II of Form 2848. The statement should read:

The IRS will not accept your non-IRS power of attorney if it does not contain all the information listed above. You can sign and submit a completed Form 2848 or a new non-IRS power of attorney that contains all the information. If you cannot sign an acceptable replacement document, your attorney-in-fact may be able to perfect (make acceptable to the IRS) your non-IRS power of attorney by using the procedure described next.

Under the following conditions, the attorney-in-fact named in your non-IRS power of attorney can sign a Form 2848 on your behalf.

The Form 2848 prepared by your attorney-in-fact should be signed in the following manner: “Jane Taxpayer (your name), by John Attorney (your attorney-in-fact's name) under authority of the attached power of attorney.”

The individual named as representative on Form 2848 must sign and date Part II of the form. This can be the attorney-in-fact named in the original power of attorney or any other individual recognized to practice before the IRS.

The IRS has a centralized computer database system called the CAF system. This system contains information on the authority of taxpayer representatives. Generally, when you submit a power of attorney document to the IRS, it is processed for inclusion on the CAF system. Entry of your power of attorney on the CAF system enables IRS personnel, who do not have a copy of your power of attorney, to verify the authority of your representative by accessing the centralized authorization file. It also enables the IRS to automatically send copies of notices and other IRS communications to your representative.

You can have your non-IRS power of attorney entered on the CAF system by attaching it to a completed transmittal Form 2848 and submitting it to the IRS. Your signature is not required; however, your attorney-in-fact must sign the Declaration of Representative (see Part II of Form 2848).

The following hints are summaries of some of the line-by-line instructions for Form 2848.

If a joint return is involved and you and your spouse have different addresses, you must enter each address. If you and your spouse choose different representatives, each of you must file a separate Form 2848.

Only individuals may be named as representatives. If your representative has not been assigned a CAF number, enter “None” on that line and the IRS will issue one to him or her. If the representative's address or phone number has changed since the CAF number was issued, you should check the appropriate box. Enter your representative's fax number if available.

If you want to name more than three representatives, you must attach a list of the additional representatives to the form. Normally, the IRS will send notices and other written communications to you and a copy to the first representative listed. However, you can choose other options (see line 7 of Form 2848).

You can list any tax years or periods that ended before the date the form is signed. You also may list future periods that end no later than 3 years from that date. However, avoid general references such as all years or all periods.

If any column does not apply to your particular tax matter, you should enter “not applicable” in that column and, instead, specifically describe the matter to which the power of attorney pertains.

Certain matters cannot be recorded on the CAF system. Examples of such matters include, but are not limited to, the following.

If the tax matter described on line 3 of Form 2848 concerns one of these matters specifically, check the box on line 4. If this line is checked, your representative should bring a copy of the power of attorney to each IRS office where the specific matter will be discussed.

The IRS will accept a copy of a power of attorney that is submitted by facsimile transmission (fax). If you choose to file a power of attorney by fax, be sure the appropriate IRS office is equipped to accept this type of transmission. See the Where To File Chart for fax numbers of the centers receiving Form 2848.

You must submit any update or modification to an existing power of attorney in writing. Your signature (or the signature of the individual(s) authorized to sign on your behalf) is required. Do this by sending the updated Form 2848 or non-IRS power of attorney to the IRS office(s) where you previously sent the original(s), including the center where the related return was, or will be filed.

Any recognized representative may substitute or delegate authority if the substitution or delegation is specifically authorized in the original power of attorney. To make a substitution or delegation, the representative must file the following items with the IRS office(s) where the power of attorney was filed.

A newly filed power of attorney concerning the same matter will revoke a previously filed power of attorney. However, the new power of attorney will not revoke the prior power of attorney if it specifically states it does not revoke such prior power of attorney and either of the following are attached to the new power of attorney.

If you want to revoke an existing power of attorney and do not want to name a new representative, send a copy of the previously executed power of attorney to the IRS office(s) where it was originally filed. Write "REVOKE" across the top of the power of attorney. The copy must have a current date and signature of the taxpayer who signed the original.

If you do not have a copy of the original power of attorney you want to revoke, send a statement to the IRS office(s) where you filed the original. The statement of revocation must:

You also must sign and date the statement.

A recognized representative may withdraw from representation by filing a statement with each office where the original power of attorney was filed. The statement must be signed by the representative and identify the name and address of the taxpayer(s) and tax matter(s) from which the representative is withdrawing. The representative must include his or her CAF number on the statement if one has been assigned.

If you are merely providing information to the IRS at the request of the IRS, a power of attorney is not required.

You do not have to file a power of attorney to authorize the IRS to discuss and provide specific confidential tax return information to any individual, corporation, firm, trust, partnership, or organization you designate through the use of Form 8821. You may file your own tax information authorization without using Form 8821, but it must include all the information that is requested on the form.

Form 8821 is strictly a disclosure authorization form and cannot be used to designate an individual to represent you. If you want to name a representative, you should use Form 2848.

When you file a Form 8821 with the IRS, it also is processed for entry on the CAF system. Entry on the CAF system enables IRS employees who do not have access to the actual power of attorney or tax information authorization to do all of the following actions.

You can revoke any existing authorization with the IRS by writing “REVOKE” across the top of the previously executed Form 8821 and signing your name again under the existing signature. You should send this to the office(s) where you originally filed the Form 8821. If you do not have a copy of the prior Form 8821, send a letter revoking authorization to the IRS office(s) where you filed the original. Include the name and address of each appointee whose authority is revoked and sign the letter.

You can authorize the IRS to discuss your return with a friend, family member, or any other person you choose. If you check the Yes box in the third party designee area of your 2001 tax return and provide the information required, you are authorizing:

The authorization cannot be revoked. However, it will automatically end no later than the due date (without any extensions) for filing your 2002 tax return. This is April 15, 2003, for most people.

See your form instructions for more information.

If you want to allow the paid preparer who signed your return to discuss it with the IRS, just enter “Preparer” in the space for the designee's name.

If you are a tax matters partner or person (TMP) (as defined in section 6231(a)(7) of the Internal Revenue Code), you are not required to file Form 2848. You are authorized to perform various acts on behalf of the partnership or subchapter S corporation. This may include the power to delegate authority to represent yourself and to sign documents in that capacity.

The following are examples of acts you can perform as a TMP. These acts cannot be delegated to another representative.

If you are a fiduciary (trustee, executor, administrator, receiver, or guardian) of a taxpayer, you are deemed to be the taxpayer. For this reason you are not required to file a power of attorney. However, a fiduciary should file Form 56, Notice Concerning Fiduciary Relationship, to notify the IRS of the fiduciary relationship.

The IRS has been allowed under a temporary regulation to discuss with a third party designee, tax return or return information after receiving your nonwritten (oral) consent. Under this temporary regulation, the IRS is permitted to disclose information to any person accompanying you to a meeting, interview, or participating with you, in a telephone conversation with the IRS. Before any disclosure of information, the IRS must verify the following.

The temporary regulation is in effect from January 11, 2001, through January 12, 2004.

They enter their names, street address, and social security numbers in the spaces provided.

They enter the name and current address of their chosen representative, Jim Smith. They also enter Mr. Smith's CAF number, his telephone number, and his fax number. Mr. Smith's address and telephone number have not changed since the IRS issued his CAF number, so Stan and Mary do not check either box in the second column.

They enter “income” for the type of tax, “1040” for the form number, and “2000” for the tax year.

Stan and Mary make no entry on this line because they do not want to restrict the use for their power of attorney to a specific use that is not recorded on the CAF. See Preparation of Form — Helpful Hints, earlier.

Stan and Mary want to sign any agreement that reflects changes to their 2000 income tax liability, so they restrict the acts Mr. Smith is authorized to perform by writing “taxpayers must sign any agreement form” on line 5. If they had chosen, they could have listed other restrictions on line 5.

They make no entry on line 6 because they want any refund checks sent directly to them.

Stan and Mary make no entry on line 7 because they want the original notices and communications sent to them, and the copies sent to Mr. Smith.

Stan and Mary are filing their first power of attorney, so they make no entry on this line. However, if they had filed prior powers of attorney, the filing of this current power would automatically revoke any earlier ones for the same tax matter(s). Therefore, to retain an earlier power of attorney, they would need to have checked the box on line 8 and attached a copy of the prior power of attorney that they wanted to maintain.

If Stan and Mary decide later that they can handle the examination on their own, they can revoke the power of attorney. (See Revoking a power of attorney, earlier, for the special rules that apply.)

This is a joint authorization (see line 1), so both Stan and Mary must sign and date the form. If they do not, the IRS cannot accept it.

Jim Smith must complete this part of Form 2848. If he does not sign this part, the IRS cannot accept the form.

If the power of attorney document is incomplete, the IRS will attempt to secure the missing information either by writing or telephoning you or your representative. For example, if your signature or signature date is missing, the IRS will contact you. If information concerning your representative is missing and information sufficient to make a contact (such as an address and/or a telephone number) is on the document, the IRS will try to contact your representative.

In either case, the power of attorney is not considered valid until all required information is entered on the document. The individual(s) named as representative(s) will not be recognized to practice before the IRS, on your behalf, until the document is complete and accepted by the IRS.

If the power of attorney is complete and valid, the IRS will then take action to recognize the representative. In most instances, this involves processing the document on the CAF system. Recording the data on the CAF system enables the IRS to automatically direct copies of mailings to authorized representatives and to instantly recognize the scope of authority granted.

Specific-use powers of attorney are not processed on the CAF system (see Preparation of Form — Helpful Hints, earlier). For example, a power of attorney that is a one-time or specific-issue grant of authority is not processed on the CAF system. These documents remain with the related case files. In this situation, you should check the box on line 4 of Form 2848. If it is checked, the representative should bring a copy of the power of attorney to each meeting with the IRS.

If you have a recognized representative, you and the representative will receive required notices and other correspondence from the IRS (either the original or a copy), unless you checked box (c) on line 7 of Form 2848 or placed a similar restriction on your authorization of a representative (power of attorney). If the power of attorney is processed on the CAF system, the IRS will send your representative(s) a duplicate of all computer-generated correspondence that is sent to you. (This includes notices and letters produced either at the Martinsburg Computing Center, or other IRS centers.) The IRS employee handling the case is responsible for ensuring that the original and any requested copies of each manually-generated correspondence are sent to you and your representative(s) in accordance with your authorization.

If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate.

The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review.

To contact your Taxpayer Advocate:

For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS.

To find out what services are available, get Publication 910, Guide to Free Tax Services. It contains a list of free tax publications and an index of tax topics. It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics.