The IRS has created a new feature which will enable a tax practitioner to quickly represent you regarding your IRS problems. IRS representation by your tax practitioner requires authorization with a Power of Attorney (POA). The IRS has had a backlog of POAs which has resulted in taking many weeks to process a POA after it has been submitted. This new feature will quickly give you digital control over who can represent you or view your tax records. This is a groundbreaking step in the IRS’s expansion of electronic options for taxpayers and tax professionals.
The new feature, one of many recent enhancements to the Online Account for individuals, will allow you to authorize your tax practitioner to represent you before the IRS with a (POA) and to view your tax accounts with a Tax Information Authorizations (TIA).
“The ability for taxpayers to connect online with their tax professional is a groundbreaking step for the IRS,” said Chuck Rettig, IRS Commissioner. “This is the first, basic step toward a more fully integrated digital tax system that will benefit taxpayers, tax professionals and the IRS.”
Tax practitioners can now go to the new Tax Pro Account on IRS.gov to digitally initiate POAs and TIAs. The new digital authorization requests are simpler versions of Forms 2848 and 8821.
After being completed and submitted by your tax professional, the authorization requests will appear in your Online Account for your review, approval or rejection and electronic signature. Your identity will already have been verified at the time of login. You simply check a box as your signature and submit the authorization request to the IRS.
The completed digital authorization, if accurate, will go directly to the Centralized Authorization File (CAF) database and will not require manual processing. Most requests will be immediately recorded and appear on the list of approved authorizations in the taxpayer’s Online Account and the tax professional’s Tax Pro Account. Some authorizations may take up to 48 hours. Your tax professional may then go to e-Services Transcript Delivery Service to see your IRS records.
To connect with your tax professionals, you either login to your Online Account using your IRS username and password or you must create an account after passing a one-time identity verification process. If you cannot validate your identity, you cannot use this option, and your tax professional must use the fax, mail, or online submission process. However, the IRS will be announcing a new process for this application later this year.
The initial launch of the Tax Pro Account represents the first release of the tool. Additional functionality will be added for taxpayers and tax professionals that will increase the options for electronic interactions.
The digital authorization process is currently available only to individual taxpayers.
David Zubler is a tax accountant and Enrolled Agent in East Tennessee, providing tax strategies and representing clients before the IRS and has over 25 years of tax experience. He is the author of five tax books and is the founder and president of Your Tax Care. The company provides business and tax education to the public at its website, YourTaxCare.com. David has appeared on national tv, and recordings of David’s daily tax tip radio program are also available. David can be reached at (865) 363-3019 or contacted by email at firstname.lastname@example.org