Form 2848 vs Form 8821: Represent or Just View?

The difference in one minute

Both forms name another person and both involve your tax information, which is why they get confused. The dividing line is simple: authority to act versus permission to look.

• Form 2848, Power of Attorney and Declaration of Representative: the named person may represent you before the IRS and receive your tax information, but only for the matters, forms and years you list.
• Form 8821, Tax Information Authorization: the named person may receive or inspect your tax information. It does not let them speak for you, negotiate, or sign anything on your behalf.
• If someone needs to talk to an examiner for you, attend a meeting or file a response in your place, that points to Form 2848.
• If someone only needs to read your account, for example a lender, an accountant gathering numbers, or a family member helping you organize, that points to Form 8821.

Who can be named on Form 2848

A representative has to be someone the rules allow to practice before the IRS. Under Circular 230, attorneys and CPAs in good standing and enrolled agents may do so, and enrolled actuaries and enrolled retirement plan agents may do so in limited areas. You can always represent yourself, and the rules allow limited representation by some others, such as an immediate family member.

Preparers who are not attorneys, CPAs or enrolled agents have narrower rights. IRS Publication 947 describes them as able to appear only in limited settings, for returns they prepared and signed, and not before Appeals or revenue officers. It also states that Form 8821 will not authorize an unenrolled preparer to represent you. Filling out the wrong form does not widen anyone's authority.

Scope: what the form actually covers

Neither form is a blank check. Form 2848 is limited by the matters and years you write on it, so describe them carefully. A representative named for one income tax year does not automatically speak for another. Form 8821 is likewise limited to the information and periods you list.

If you and a spouse filed a joint return and both want a representative, each spouse signs a separate Form 2848. Sharing one form is not enough.

Choosing between them: three everyday cases

A freelance designer receives an audit letter and wants her enrolled agent to take over the correspondence. She needs Form 2848, because the agent must speak and sign for her.

A couple applying for a mortgage wants their loan officer to see transcripts. The lender only needs to view information, so Form 8821 fits, not Form 2848.

A small-business owner is happy to handle the response himself but wants his bookkeeper to pull account details. Form 8821 for the bookkeeper lets her look without any authority to act. Which form you need depends on the task, not on how much you trust the person.

Where forms fit with a drafted response

If you respond on your own, you usually do not need either form. If you later bring in a representative, the IRS notice or hearing request may ask you to attach a Form 2848 with the representative's signature, for example with a Collection Due Process hearing request.

IRS Audit Defense Pro is software that helps you draft the letter. It does not make anyone your representative and does not file these forms for you. If you use a professional, they will typically handle the form with you.

Common snags

Details to double-check before you sign anything:

• Read the current form instructions. The IRS updates forms, and Topic 311 on the IRS site is the starting point for how the forms work.
• Confirm the credential of the person you are naming, and that it covers the type of matter you have.
• List the right tax forms and years. Too narrow a description can mean the IRS will not talk to your representative about the notice in front of you.
• Keep a copy of what you signed and know who holds the original.
• Remember that signing authorizes access to your information, so name only people you trust.

Frequently asked questions

Sources

• Topic 311, Power of attorney information
• IRS Publication 947, Practice Before the IRS and Power of Attorney
• Circular 230, 31 CFR Part 10 Subpart A
• 26 U.S.C. 7521, Procedures involving taxpayer interviews

Related guides

• Handling an IRS Notice Yourself or Hiring a ProfessionalYou can respond to many IRS notices yourself.
• The Taxpayer Advocate Service: Help When an IRS Problem StallsThe Taxpayer Advocate Service is an independent office within the IRS that can help when an IRS problem is causing financial hardship, has gone unresolved for more than 30 days, or the IRS missed a promised date.
• The IRS Taxpayer Bill of Rights, in Plain EnglishThe Taxpayer Bill of Rights lists ten rights, including the right to be informed, to challenge the IRS's position and be heard, to appeal to an independent forum, and to retain representation.
• How to get your IRS tax transcriptsThe fastest route is usually your IRS Online Account, where you can view and download transcripts.
• IRS office audit: what to expect at the interviewAn office audit is an in-person interview at an IRS office about specific items on your return.
• How to request a Collection Due Process hearingFind the Collection Due Process notice, note the deadline printed on it (generally about 30 days), complete Form 12153 with your reasons, attach what applies, and send it to the hearing address on the notice.