What requirements apply if an organization is represented by an attorney or other authorized representative

If an organization is represented by an attorney or other authorized representative, the IRS requires specific documentation to authorize the representation. The organization must submit either Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, depending on the scope of the representation.

1. Form 2848, Power of Attorney and Declaration of Representative:
   • This form is used to authorize an individual to represent the organization before the IRS.
   • The representative must be eligible to practice before the IRS, such as an attorney, CPA, enrolled agent, or other recognized representative.
   • The form must include the organization's name, mailing address, EIN, and the representative's information.
   • The representative must sign Part II, Declaration of Representative, affirming their eligibility to practice before the IRS.
   • The form allows the representative to perform all acts that the organization can perform with respect to the matters described in the power of attorney, except for certain restricted acts unless specifically authorized.
2. Form 8821, Tax Information Authorization:
   • This form is used if the organization wants to authorize an individual or organization to inspect and/or receive its confidential tax return information but does not want to authorize representation before the IRS.
   • The form must include the organization's name, mailing address, EIN, and the appointee's information.
   • The appointee is authorized to receive tax information, notices, and other written communications on behalf of the organization but cannot represent the organization before the IRS.
3. Requirements for Valid Authorization:
   • The authorization must be signed and dated by an authorized officer or trustee of the organization.
   • The representative must be a bona fide officer, trustee, or other official authorized to sign for the organization.
   • If the representative is not an authorized officer or trustee, a valid Form 2848 or 8821 must be secured before taking action on the request.
4. Specific Use and Scope:
   • The scope of the representation must be clearly described in the authorization.
   • For specific-use authorizations, the form must indicate the particular issue or matter for which the authorization is granted.
5. Submission and Processing:
   • The completed Form 2848 or 8821 must be submitted to the IRS for processing.
   • The IRS will record the authorization on the Centralized Authorization File (CAF) system, enabling IRS personnel to verify the authority of the representative.

By adhering to these requirements, the organization ensures that its representative is properly authorized to act on its behalf before the IRS, facilitating effective communication and handling of tax matters.

Sources:
Instructions for Form 2848 (09/2021)
Publication 947 (2/2018)
IRM Part 4. Examining Process. Chapter 75. Exempt Organizations Examination Procedures. Section 10. Exempt Organization Pre-contact Procedures
IRM Part 4. Examining Process. Chapter 10. Examination of Returns. Section 2. Pre-Contact Responsibilities
IRM Part 7. Rulings and Agreements. Chapter 21. Exempt Organizations Determinations Processing. Section 1. Exempt Organizations Determinations Processing Overview