Quick overview
A Power of Attorney (POA) for tax representation gives a trusted person the legal authority to act for you with the IRS or a state tax agency. The IRS uses Form 2848, “Power of Attorney and Declaration of Representative,” to record that authorization. A POA is appropriate when you cannot or prefer not to handle an IRS contact yourself—common situations include audits, collection matters, complex returns, or medical incapacity.
(See the differences between authorizing representation and authorizing information release below.)
How the IRS POA works — step-by-step
- Choose the right form and authorization type
- Use IRS Form 2848 to grant representation authority and to let the agent represent you before the IRS for specific tax matters and years. (IRS, Form 2848)
- If you only want to give someone access to your tax information but not the ability to represent you, use Form 8821 (Tax Information Authorization).
- Identify the principal and the representative
- The principal is the taxpayer who is granting authority.
- The representative should be a named individual or firm; typical representatives are enrolled agents, CPAs, or attorneys who are authorized to practice before the IRS under Treasury Department Circular 230.
- Specify tax matters and years
- On Form 2848 you must list the tax form numbers (for example, 1040, 941) and the tax years or periods covered. Be as specific as needed—limited authorizations are safer and prevent broad, unintended powers.
- Sign and date the form
- The principal must sign. The designated representative must also sign and include their professional credentials or IRS preparer/enrolled agent identification where applicable.
- Submit the form to the IRS
- You can mail, fax, or (in many cases) submit a copy to the IRS office handling your case. Once processed, the IRS adds the agent to the Centralized Authorization File (CAF) and assigns a CAF number.
- Monitor and review
- Keep copies, check that the CAF reflects the authorization, and maintain clear communication with your representative.
(For filing instructions and the latest Form 2848, see IRS.gov — Form 2848.)
Key differences: Form 2848 vs. Form 8821
- Form 2848 (POA): Authorizes someone to represent you, sign certain forms, receive confidential information, and engage with the IRS on the listed tax matters.
- Form 8821: Authorizes disclosure of tax information only; it does not allow representation or signing on your behalf.
Use the right form for your purpose to avoid frustration and protected-rights breaches.
When to use a POA — common scenarios
- You receive an IRS audit or notice that requires detailed correspondence or negotiation.
- You owe taxes and need a practitioner to negotiate an installment agreement or an Offer in Compromise.
- You’re running a business and want a CPA to handle payroll tax disputes or employment tax audits.
- You’re medically incapacitated, traveling, deployed, or otherwise unavailable to respond in a timely way.
- You want a tax professional to sign certain documents for you in IRS proceedings.
Practical examples from practice
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Audit representation: A small-business owner receiving an employment tax audit named a CPA on Form 2848 to receive notices and negotiate adjustments. The CPA could respond directly and arrange meetings with IRS examiners, saving the owner time and reducing stress.
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Incapacity: When a client was hospitalized for several months, a trusted family member (and a paid CPA) were added via Form 2848 so timely returns and collection negotiations continued without penalties for late response.
What a tax POA can and cannot do
Can do:
- Receive confidential tax information about listed years and forms.
- Represent and negotiate with the IRS for specified tax matters.
- Sign certain forms and agreements as allowed by IRS rules.
Cannot do unless explicitly authorized:
- Make or authorize third-party financial transactions unrelated to tax matters (e.g., banking transfers) unless a separate state-level financial POA grants those powers.
- Act after the principal’s death — tax authority generally ends at death and the estate’s executor handles post-mortem tax matters.
How to limit and tailor authority
- Use limited language on Form 2848. Instead of writing “all tax matters,” list specific tax years and form numbers.
- For narrow tasks—such as dealing with one audit year—only list that year and the relevant form (e.g., 1040 for individual income tax).
- Write start and end dates in the form or submit a written revocation when you want to end the arrangement.
Revoking or changing a POA
- You may revoke a POA at any time by submitting a written revocation to the IRS or by submitting a new Form 2848 that revokes prior authorizations. Notify your representative and any state tax agencies as well. (See our guide: How to Revoke a Power of Attorney with the IRS.)
- Keep records of the revocation and confirm the IRS updated its CAF entry.
Internal links:
- How to Name an Authorized Representative with the IRS (Power of Attorney Basics): https://finhelp.io/glossary/how-to-name-an-authorized-representative-with-the-irs-power-of-attorney-basics/
- Form 2848 — Power of Attorney and Declaration of Representative: https://finhelp.io/glossary/form-2848-power-of-attorney-and-declaration-of-representative/
- How to Revoke a Power of Attorney with the IRS: https://finhelp.io/glossary/how-to-revoke-a-power-of-attorney-with-the-irs/
Common mistakes and red flags
- Granting overly broad authority: Listing “all tax matters” for many years can create unintended powers.
- Naming an unqualified representative: Only name someone with experience and, when appropriate, credentials (EA, CPA, or attorney).
- Failing to file: If the form isn’t correctly filed with the IRS office handling your case, the agency may not recognize the representative.
- Not monitoring activity: A POA does not remove your responsibility for tax debts—stay informed about communications and filings.
Best practices and checklist before signing
- Vet the representative: Check credentials, disciplinary history, and references.
- Limit scope and time: Authorize only what’s necessary and consider automatic expiration dates if appropriate.
- Require regular updates: Ask for weekly or monthly status notes while matters are active.
- Retain copies: Keep signed originals and proof of submission.
- Understand fees: Put billing arrangements in writing, including who pays and when.
Timeline and processing
Processing times vary; the IRS typically updates the CAF within a few weeks of receiving a properly completed Form 2848, but busy seasons or specific procedural lines may extend that time. If your matter is urgent, contact the IRS office handling your case and confirm acceptance.
Security and privacy
Only share sensitive ID data through secure channels. The representative will have access to confidential tax details—confirm you trust them and that they will follow data-protection best practices.
Additional resources
- IRS — Form 2848, Power of Attorney and Declaration of Representative: https://www.irs.gov/forms-pubs/about-form-2848
- IRS — Taxpayer Bill of Rights: https://www.irs.gov/taxpayer-bill-of-rights
- If you need step-by-step instructions and examples, see our article on How to Name an Authorized Representative with the IRS (Power of Attorney Basics).
Professional disclaimer
This article is educational and reflects general practices and my professional observations. It does not provide legal or tax advice for your specific situation. Consult a qualified tax attorney, CPA, or enrolled agent before granting or revoking a tax POA.
Sources
- IRS — Form 2848, Power of Attorney and Declaration of Representative (IRS.gov)
- IRS — Taxpayer Bill of Rights (IRS.gov)
