Forms 2848 vs 8821, which to go with?

[ETax847]

Which form do you generally file with the IRS to be able to speak on behalf of a client?  Does either form serve this purpose?

[jasdlm]

Are you representing the client or simply seeking information on a client account?

[Pacun]

2848 is better for us, preparers.

[ETax847]

I would like to discuss a client's CP notice in hopes of getting it resolved timely.

[Catherine]

Then you want a 2848 and make sure you specify on it the tax year in question, the CP2000, and also civil penalties.  Those should go on three separate lines on the 2848 so there's no question.  In the column for "tax form" you can leave it blank or put "1040 series"  for the first one.  Think about if you want to go back or forwards a year - in case there are carry forwards (from prior or to following) that could affect the other year's return, having it on the 2848 right from the start can streamline the resolution.

[TAXMAN]

I think a preparer who is not a cpa or an ea cannot use 2848. Is this correct?

[jklcpa]

49 minutes ago, TAXMAN said:

I think a preparer who is not a cpa or an ea cannot use 2848. Is this correct?

Not correct. Suggest you review pg 2 of the instructions under "Declaration of Representative".

[Catherine]

20 hours ago, TAXMAN said:

I think a preparer who is not a cpa or an ea cannot use 2848. Is this correct?

The trick is that a non-CPA, non-EA preparer can ONLY represent the taxpayer for returns that s/he has prepared.  No other years.

[jasdlm]

Interested to hear what folks on this board think about the potential liability to preparers under a 2848 vs 8821 (receiving notices and not responding, for example, because you no longer represent the taxpayer).

I haven't thought much about it, but I have read a couple articles discussing the issue.

How many of you go through the step of terminating your 2848 after you resolve the issue you requested the same for?  I might have a summer project.

Thanks!

[Catherine]

The official procedure is to take the originally faxed in POA (no word what to do if you *mailed* it in), write "REVOKED" all over it in heavy marker, and fax that to the CAF unit.

I've done it for several clients over the years.  It has NEVER stopped me from getting notices for them, annoyingly.

[TAXMAN]

Thanks for the reply Judy. I had forgot about that one.

[jklcpa]

A Drake support person told me an interesting story related to getting POAs.  She said that a firm allowed individual preparers within the firm to get the POAs in their names rather than in the name of the firm, and the firm did not have these individual preparers sign a non-compete agreement. When these preparers left the firm they were able to take those clients as their own because the clients had signed the POAs that granted those individuals the authority rather than at the firm level.

Has anyone heard of this happening?  

[Catherine]

On 3/27/2021 at 8:22 PM, jklcpa said:

Has anyone heard of this happening?  

I have not - but then I only have experience with very small firms.  My problem is the other way - trying to revoke POAs for former clients.  I've sent in I don't know how many revocations yet I still get letters for these folks.  

[jasdlm]

On 3/27/2021 at 7:22 PM, jklcpa said:

A Drake support person told me an interesting story related to getting POAs.  She said that a firm allowed individual preparers within the firm to get the POAs in their names rather than in the name of the firm, and the firm did not have these individual preparers sign a non-compete agreement. When these preparers left the firm they were able to take those clients as their own because the clients had signed the POAs that granted those individuals the authority rather than at the firm level.

Has anyone heard of this happening?  

Wow.  I'm going back to review my confidentiality/proprietary agreement with employees right now!