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Part 21. Customer Account Services

Chapter 3. Taxpayer Contacts

Section 7. Processing Third Party Authorizations onto the Centralized Authorization File (CAF) (Cont. 1)

21.3.7  Processing Third Party Authorizations onto the Centralized Authorization File (CAF) (Cont. 1)

21.3.7.14 
Form 944 Processing

21.3.7.14.7  (10-01-2006)
Large Corporation Processing

  1. Accounts with Large Corp Indicators (LCI) have been consolidated to the Ogden (29) and Cincinnati (17) sites. Please follow instructions below for routing of attached correspondence. If you receive Form 2848/8821 with attached listing of subsidiaries to EIN listed on the form:

    • Process EIN on form.

    • Look on SUMRY for (LCI) indicator to determine correct routing for the attached listing.

    • If indicator is 29 (Ogden), route attached listing with copy of processed form to Ogden LCI Unit, Mail Stop 6731 or 6732.

    • If indicator is 17 (Cincinnati), route attached listing with copy of processed form to Cincinnati LCI Unit, Mail Stop 537G.

21.3.7.15  (10-01-2005)
Authorizations Not Recorded on the CAF

  1. There are many third party authorizations not recorded on the CAF. The sub sections below list third party authorizations not recorded on the CAF.

21.3.7.15.1  (10-01-2006)
Oral Disclosure Consent (ODC)

  1. The ODC allows the taxpayer to verbally grant the IRS the authority to disclose oral tax information to the designee pertaining to specific notice issues. The authorization expires when the notice issue is resolved. See IRM 21.1.3.3.2,Oral Disclosure Consent, for additional information

  2. For Oral TIA (OTIA or paperless Form 8821, Tax Information Authorization) see IRM 21.3.7.14.3 .

21.3.7.15.2  (10-01-2005)
General/Durable Authorization

  1. General/durable authorizations generally do not provide a TIN, address or specific tax matters. They customarily grant authority to handle any and all legal matters concerning tax matters, financial transactions and real estate transactions. See Publication 216,Conference and Practice Requirements, Section 601.503(4).

  2. If attached to a completed Form 2848, Power of Attorney and Declaration of Representative, record the authorization on CAF. The taxpayer's signature is not required on Form 2848,Power of Attorney and Declaration of Representative . The durable representative signs Form 2848, Power of Attorney and Declaration of Representative, naming him/herself as the authorized third party. Establish the notice authorization for the first third party listed.

  3. If not attached to a completed Form 2848, Power of Attorney and Declaration of Representative:

    • Return to the originator with instructions for a Form 2848, Power of Attorney and Declaration of Representative, if the address in available.

    • Treat as classified waste if unable to locate an address.

21.3.7.15.3  (10-01-2005)
Specific Use Authorizations

  1. Specific use is indicated on Form 2848, Power of Attorney and Declaration of Representative or Form 8821, Tax Information Authorization, line 4.

  2. Specific use authorizations are not recorded on CAF. These must be provided by the representative with each contact with the IRS.

  3. Specific use authorizations generally do not have an MFT and tax period. They include but are not limited to:

    • Form SS-4 Application for Employer Identification Number

    • Form W-2 Series

    • Form W-4 Employee’s Withholding Allowance Certificate

    • Form 843 Claim for Refund and Request for Abatement

    • Form 966 Corporate Dissolution or Liquidation

    • Form 1096 Annual Summary and Transmittal of U.S. Information Returns

    • Form 1098 Mortgage Interest Statement

    • Form 1099 Series

    • Form 1128 Application to Adopt, Change or Retain a Tax Year

    • Form 2553 Election by a Small Business Corporation

    • Form 4361 Application for Exemption from Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners

  4. Specific use requests should be treated as classified waste unless they are a specific information request as defined in IRM 21.3.7.15.4.

21.3.7.15.4  (10-01-2006)
Specific Information Requests

  1. Requests for specific information may be submitted using Forms 2848, Power of Attorney and Declaration of Representative or Form 8821,Tax Information Authorization . These can be identified by entries on lines 3, 4, or 5.

  2. Authorizations for the purpose of verifying income (student loan, mortgage application, etc.) are generally from an educational institution, financial institution, mortgage company or federal agency. While these requests will be honored when submitted on Form 2848, Power of Attorney and Declaration of Representative, or a Form 8821, Tax Information Authorization, the more appropriate forms to use are Form 4506, Request for Copy of Tax Return, Form 4506T, Request for Transcript of Tax Return, or written equivalent. All Forms 2848, Power of Attorney and Declaration of Representative, and Form 8821,Tax Information Authorization, are routed directly to the CAF Function from Receipt and Control to determine if the form is for specific use only or contains information that should be loaded to the CAF. Forms that should not be input to the CAF are routed to the appropriate area as designated in the If and Then Chart below or treated as classified waste. When a properly completed Form 8821 is received:

    If Then
    Line 4 is not checked and it reads, send or provide transcripts or send or provide record of account Input valid authorities to CAF, photocopy and route the copy to RAIVS
    Line 4 is checked with taxpayer annotation send or provide transcripts or send or provide record of account Do not input to CAF, route the original to RAIVS
       
    Line 4 is not checked and any reference to lien, payoff demand or balance due or Form 668(y) is attached Input to CAF, photocopy and route the copy to Compliance Services Collections Operations
    Line 4 is checked with any reference to lien, payoff demand or balance due, or Form 668(y) is attached Do not input to CAF, route the original to Compliance Services Collections Operations
       

21.3.7.15.4.1  (10-01-2006)
IMF Joint Notice/Refund Indicators

  1. When an authorization is received for joint IMF taxpayers requesting that designated third party or parties receive notices, take the following actions:

    If And Then
    The primary taxpayer TIN has no notice authorization on file… The second taxpayer submits one or two notice authorization(s), Add second taxpayer’s third party representative(s) to receive notices
    The primary taxpayer TIN already has one notice authorization… The second taxpayer submits one notice authorization Add second taxpayer’s first third party representative listed to receive notices
    The second taxpayer submits one notice authorization The second taxpayer submits two notice authorizations Advise second taxpayer that only one designee will receive notices, and identify which designee will receive them.
    The primary taxpayer TIN has two notice authorizations The second taxpayer submits one notice authorization,

    • delete the primary taxpayer’s second third party representative authorized to receive notices

    • reinput without notice indicator

    • advise the primary taxpayer of the removal of one notice authorization and identify the affected designee

    • add second taxpayer’s third party representative listed to receive notices
    The primary taxpayer TIN has two notice authorizations The second taxpayer submits two notice authorizations

    • delete the primary taxpayer’s second third party representative authorized to receive notices

    • reinput without notice indicator

    • advise the primary taxpayer of the removal of one notice authorization and identify the affected designee

    • add second taxpayer’s first third party representative listed to receive notices, advise second taxpayer that only one designee will receive notices, and identify which designee will receive them.

         

  2. When the authorization is received from a second taxpayer designating a third party as receiving refund checks, take the following actions:

    If And Then..
    The first taxpayer has not submitted a refund authorization The second taxpayer submits a refund authorization, Add refund authorization for second taxpayer under the second taxpayer’s TIN
    The first taxpayer has a refund authorization… The second taxpayer submits a refund authorization, Remove the refund authorization under the first taxpayer’s TIN ~and~ do not add the refund authorization under the second taxpayer’s TIN. Advise both designated representatives that per section 601.508 of Conference and Practice Requirements, the refund authorization was removed/could not be added.
    A written agreement between disputed, recognized representatives is received… Is signed and dated by the disputed representatives and their respective taxpayers, Add the refund authority under the agreed-upon, designated representative.

21.3.7.16  (10-01-2006)
Employee Plans (EP) Processing

  1. Use MFT 74 for authorizations concerning Forms 5500, Form 5500-C, Form 5500EX and Form 5500-R. Use MFT 76 for Form 5330 . The CAF validates the plan number of Employee Plan Master File (EPMF) transactions during NAP processing to eliminate unpostables.

    • 5500 - Process with MFT 74 with a "P" at the end of the EIN, use the plan number located in the last column of Line 1 of Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization. If a plan is not found, an error message is generated and the transaction does not post to Master File. The information can be recorded on the CAF by using the suppression "2" .

    • 5330 - May be input with either an SSN or EIN. Use MFT 76 with no "P" at the end of the EIN number SSN. Use MFT 76 with a "V" at the end of the SSN Plan number is required field, if no plan number us zeroes. Each year must be processed separately, cannot process in a run. Do not use suppressions.

  2. Determine if authorization refers to both "returns and applications/ qualifications" or whether it applies to "applications/qualifications" ( Form 5300, Form 5307, Form 5310, and Form 6406) only.

  3. If a POA, referring to EP applications or qualifications ( Form 1023/1024/1028) is received, send it to: Internal Revenue Service, PO Box 2508, Room 4024, Cincinnati, OH 45201.

  4. If the authorization is for both forms and applications/qualifications:

    1. Photocopy the authorization.

    2. Record the forms portion of the authorization.

    3. Note the SDLN on the photocopy and place with completed work in gusset.

    4. Send the original document to the address above.

21.3.7.16.1  (10-01-2006)
Exempt Organization Authorizations (EO), Processing

  1. The OAMC processes authorizations for EOs. Only authorizations related to EO returns are recorded on the CAF.

  2. If a POA, referring to EO applications or qualifications ( Form 1023/1024/1028) is received, send it to: Internal Revenue Service, PO Box 2508, Room 4024, Cincinnati, OH 45201.

  3. If the authorization is for both forms and applications/qualifications:

    1. Photocopy the authorization.

    2. Record the forms portion of the authorization.

    3. Note the SDLN on the photocopy and place with completed work in gusset.

    4. Send the original document to the address above.

21.3.7.16.2  (10-01-2006)
Blind Trust Processing

  1. Blind trust POAs are coded with a "1" to the left of the taxpayer’s signature.

  2. Only one third party may be established with the blind trust indicator for each module authorized. If the blind trust POA authorizes more than one third party, establish the POA with an "M" to show it is modified. Set the blind trust indicator for the first third party listed and enter any other third party listed.

  3. Blind trust POA/TIA input to CAF is tax period specific.

  4. Only one representative is authorized to receive and inspect the blind trust’s tax information.

21.3.7.17  (10-01-2006)
Delete vs. Revoke/Withdrawal

  1. There are occasions when it is appropriate to delete an authorization. Deletions must be approved by the team manager and are appropriate when:

    1. Authorizations expire with the death of the taxpayer and must be deleted from the CAF after verification (death certificate or Form 56) and concurrence of team manager

    2. An input error occurs.

  2. When documentation is available to support the action (e.g., death certificate, letter from taxpayer, internal memo), it must be attached to a printed copy of the deletion and sent to C-Site in Kansas City for association with the original source document.

21.3.7.17.1  (10-01-2006)
Revocations and Withdrawals Form 8821

  1. Revocations/Withdrawals for Form 8821, Tax Information Authorization, can be accepted in written or verbal format and do not require essential elements

21.3.7.17.2  (10-01-2007)
Revocations and Withdrawals Form 2848

  1. All Form 2848,Power of Attorney and Declaration of Representative, revocations must be in written format.

  2. The taxpayer revokes an authorization. "Revoke" should be annotated in the top margin of a copy of the original authorization document. "Withdraw" will also be accepted. Unless otherwise specified, revoke authority from all third parties listed.

  3. A third party withdraws from the authorization. "Withdraw" should be annotated in the top margin of a copy of the authorization document but the word"Revoke" will also be accepted. The third party must affix a current, dated signature. Terminate the authorization only for those third parties who signed and dated the withdrawal request. Correspondence from the representative that includes all essential elements with a current dated signature is acceptable.

  4. Essential elements of an authorization as described in IRM 21.3.7.6.1 must be present in a representative's withdrawal, e.g., specific tax matters. An arbitrary range of tax periods, e.g.,"all tax periods," is not acceptable. Exceptions:

    1. Either the third party or taxpayer needs to sign/date revocation/withdrawal. Both parties’ signatures are not required. See IRM 21.3.7.17.2(5) for more information on taxpayer revocations.

    2. Initials are acceptable on a copy of the original request in place of the signature for revocations and withdrawals.

  5. For a complete revocation, the taxpayer's revocation form may state remove all years/tax periods instead of listing the specific tax matters, year or periods. The taxpayer's revocation must include a current date and signature.

    Note:

    Correspondence from the taxpayer with current date is acceptable.

  6. A listing of clients and respective TINs with a cover sheet requesting withdrawal by a third party is never acceptable unless the listing is a CAF 77 listing.

  7. If a revocation or withdrawal is received for an authorization not recorded on the CAF, treat as classified waste.

21.3.7.17.3  (10-01-2006)
Processing a Revocation/Withdrawal

  1. Check CC CFINK and note period(s) involved including period(s) that may be on the retention register.

  2. Correspondence must be generated to each party affected by the action, e.g., when an authorization is revoked, send the taxpayer correspondence confirming the completion of the request. Send correspondence to the third party simply advising that the authorization has been terminated.

  3. Prior to deleting the authorization:

    1. Document the action in Desktop Integration (DI). Include the following:

      • Revocation;

      • Date of revocation request;

      • Representative name;

      • CAF number;

      • Applicable form number;

      • Years and periods that were deleted;

      • SDLN;

      • 2675C; and

      • Any other pertinent information about the case.

    2. Access CC CFINK using taxpayer’s TIN and print the screen for reference.

  4. Generate Letter 2675C, Power of Attorney Termination Response, to:

    1. Taxpayer

    2. Each additional third party who is being revoked and not entitled to receive notices. To generate letters to the additional third parties put a "Y" in the CAF< field of the Letter 2675C, Power of Attorney Termination Response.

  5. To delete the authorization:

    1. Access CC KAFADM;

    2. Input taxpayer name control;

    3. Input third party name control;

    4. Input SDLN;

    5. Input MFT(s) and tax period(s); and

    6. Input action code "D" , press <Pg up> or <Page Up> key to transmit.

  6. Review CC CFINK to ensure all appropriate tax periods are deleted. Attach a copy of the CFINK print screen to the revocation/withdrawal request identifying the SDLN. A print of CC KAFADM is also acceptable.

  7. Highlight the SDLN on the printed screen, write "Revoke" and stamp with TE IDRS stamp.

  8. Revocation and withdrawal attachments are maintained by the CAF Team for 10 business days prior to shipping to C-Site in Kansas City. This allows time to access the revocation or withdrawal if submitted in error.

  9. When an authorization submitted through DA or OTIA is revoked or withdrawn, the CAF screens reflecting the authorization record must be printed as the facsimile original authorization. The revocation/withdrawal is attached to this print prior to sending to C-Site in Kansas City.

  10. If a revocation/withdrawal request relates to a Third Party Designee or Checkbox authorization, forward to Accounts Management Paper Adjustment function to reverse the Checkbox indicator (input of TC 971 action code 263). The revocation document must be associated with the tax return for which the authorization was granted. Input of the TC 971, action code 263, is not the responsibility of the CAF function.

    Note:

    Ensure all authorizations specified are removed from all TINs listed on the request.

21.3.7.17.4  (05-08-2007)
Representative/Client Listing (CAF 77)

  1. CAF generates a listing of clients, by representative, with required approval.

  2. The Representative/Client Report provides a listing of taxpayers, TINs, form numbers, tax periods, and SDLNs.

  3. External Requesters may submit a written Freedom of Information Act (FOIA) request to receive a listing of their own clients. Sample language that includes all of the required elements for making the request is available on the FOIA website at www.irs.gov under the link CAF Client Listing Request. The completed request may be submitted to:
    Internal Revenue Service
    310 W Wisconsin T-1
    Milwaukee, WI 53203-2213
    SE:S:C&L:GLD:D
    Fax #: 414–231–2766

    Note:

    Please do not refer requesters to the Disclosure Office for answers to questions regarding the following: CAF processing, obtaining a CAF Number, and how to revoke a power of attorney, etc. The Office of Disclosure employees are not trained in these areas and will only answer questions related to the request for the CAF Representative/Client listing.

21.3.7.17.4.1  (10-01-2006)
Processing of CAF 77

  1. Stamp CAF 77 listing and batch folder with TE IDRS stamp.

  2. Revoke ALL years and forms off taxpayer account for listed representative regardless of whether or not year(s)/form(s) are on listing. (This must be done before generating letter to the taxpayer.)

  3. After revoking, generate Letter 2675C, Power of Attorney Termination Response, to the taxpayer.

  4. Document the action in Desktop Integration (DI). Include the following:

    • CAF 77;

    • Revoke;

    • Date of listing (received date on the batch label);

    • Signature date on original SDLN;

    • Representative name;

    • CAF number;

    • Applicable form number;

    • Years and periods that were deleted;

    • SDLN;

    • 2675C; and

    • Any other pertinent information about the case.

  5. Prints are not required.

  6. When the batch is complete, return to the Work Lead.

  7. Listings will be maintained in the CAF or designated area for 7 years.

21.3.7.18  (10-01-2006)
Office of Professional Responsibility (OPR)

  1. OPR provides e-mail notice of suspensions and disbarments to a Contact Point in the Memphis CAF function, specifically:

    1. Name, city and state

    2. Professional status (i.e., attorney, certified public accountant, enrolled agent, or enrolled actuary)

    3. Type of discipline (i.e., suspension, disbarment, consent suspension, expedited suspension and reprimand)

    4. Effective date

    5. Period of suspension

  2. The CAF Contact Point must maintain a print of each e-mail notification received from OPR by received date, for a period of three years.

  3. Once input, the CAF provides servicewide notice and ensures powers of attorney submitted by a party not eligible to practice (identified through official notice) are rejected from processing.

  4. When notification is received that a third party has been disbarred, suspended, or reinstated, the CAF Contact Point must take the actions outlined in the table below within two business days. Check CC RPINK for Matching Representative Record.

    If Then
    RPINK confirms matching representative record. 1. CC KAFRM the Representative. 2. Enter D for disbarred or S for suspended using CC UPRF. 3. On second Name line, enter begin/end date(s).
    RPINK does not reveal matching representative record. 1. Research thoroughly. 2. Obtain team manager. 3. Add representative information to the CAF. 4. Assign CAF number. 5. Input the appropriate practice code.

    Note:

    When CC RPINK does not reveal a representative record, it is possible that the representative is not a party to authorizations recorded on the CAF. Only after thorough research and concurrence from the team manager, add the representative information to the CAF, assigning a CAF number, and input the appropriate practice code. The presence of the practice code will prevent the CP 547, We Assigned You a Centralized Authorization File (CAF) Number, from being issued.

  5. Input CC KAFRMR to call up the CC UPRCF screen.

  6. Input the CC UPRCF with the appropriate information and the indicator code onto the screen.

    1. Input a "D" in the Representative Action Code field for disbarment.

    2. Input an "S" in the Representative Action Code field for suspension.

    3. Input a "2" in the Representative Action Code field to remove the disbarment or suspension indicators when the third party is reinstated.

    Note:

    Other indicators available are "E" for deceased and "U" for undeliverable. Future enhancements include an "R" indicator for retired and an "I" indicator for ineligible. The ineligible indicator will apply to determinations made by the Return Preparer Coordinator Program, the Enrolled Agent/Practitioner Program and by court injunctions.

  7. When notice is received of a suspension, the notice must be maintained by the CAF Team until such period has expired. The third party is reinstated by removal of the "S" indicator from the Action Code field.

  8. The OPR occasionally requests CAF research. In the absence of an approved list of requestors, the CAF examiner must verify the requestor as an IRS employee using the Discovery Directory prior to releasing information. If written information is requested, the CAF examiner must follow "secure transmittal" procedures:

    1. Observe Faxing precautions. See IRM 11.3.1.10, .Introduction to Disclosure.

    2. E-mail is not considered secure and should not be used when taxpayer data is involved unless the transmission is within the IRS firewall and is sent using Outlook’s secured messaging feature (encryption).

    Note:

    If a listing of clients, by representative, is requested, see IRM 21.3.7.17.2.1 and consult with your manager.

  9. For further information, contact the Office of Professional Responsibility at 202–622–7098.

21.3.7.18.1  (10-01-2006)
Correcting CAF Designations

  1. Effective March 1, 2005, an Area Return Preparer Coordinator, the Office of Professional Responsibility, or the Headquarters Analyst may request designation level changes specific to a recorded authorization. The request will be received by a centralized point of contact in the Ogden CAF function using the format shown below.

  2. Notice of Unacceptable CAF Record - Designation Level Change

    1. Request for use by Return Preparer Coordinator, Office of Professional Responsibility or Headquarters Date: ___________

    2. SDLN of authorization: _______________________

    3. Taxpayer Name and TIN:_________________________________________

    4. Name and Address of Third Party: __________________________________

    5. CAF # of Third Party:_____________________________

    6. Requestor:________________________ _____________________

    7. Name Originator Phone Number ___________________________________

  3. The Designation Level should be corrected to:

    1. Attorney ~ jurisdiction code: _________________________

    2. Certified Public Accountant ~ jurisdiction code: _________________

    3. Enrolled Agent ~ enrollment number: ________________

    4. Officer of Corporation ~ title: ________________________

    5. Full Time Employee ~ title: _________________________

    6. Family Member ~ title: __________________________

    7. Enrolled Actuary ~ enrollment number: _____________________

    8. Unenrolled Return Preparer

    9. X - Unenrolled Return Preparer designated on Form 2848, Power of Attorney and Declaration of Representative, received by the IRS after March 29, 2004, and not eligible to engage in limited practice for the tax matter(s) listed on the authorization. Specify tax matter(s) below:

    10. Unenrolled Return Preparer designated on Form 2848, Power of Attorney and Declaration of Representative, received by the IRS after March 29, 2004, and not eligible to engage in limited practice for the tax matter(s) listed on the authorization. Specify tax matter(s) below: Period______________________ MFT _______________

    11. Student Attorney ~ Special Orders attached.

    12. Student Accountant ~ Special Orders attached

  4. If the above action results in the taxpayer being rendered without representation, the taxpayer has been advised that they are able to retain representation in accordance with Treasury Department Circular No. 230, Conference and Practice Requirements contained in Publication 216 and Publication 470, Limited Practice Without Enrollment.

  5. The Area Return Preparer Coordinator investigates all Form 2848, Power of Attorney and Declaration of Representative, where the third party’s claimed status is in question. For a current listing of coordinators, see http://sbse.web.irs.gov/EPD/PSP/Preparer/RPClist.htm.

  6. The Ogden CAF Team only processes requests confirmed by an Area Return Preparer Coordinator. Extraordinary circumstances may warrant expedited input, e.g., a request from the Office of Professional Responsibility or the Headquarters Analyst.

  7. Requests from Area Return Preparer Coordinators are accepted at face value and may be routed, faxed, or sent through secured e-mail.

  8. The change in authorization level is not a revocation, withdrawal or deletion. CAF Teams do not provide notice of authorization level changes.

  9. The request, once completed, is sent to the C-Site in Kansas City for association with the original authorization.

21.3.7.19  (10-01-2007)
Filing and Maintaining Third Party Authorizations

  1. Send authorization forms to C-Site in Kansas City after all actions are taken and the authorization is processed to the CAF.

  2. It is necessary to send the following types of documents for attachment to the original SDLN after the requested action is taken, such as:

    • Revocations

    • Deletions

    • Suspension

    • Disbarment

    • Undeliverable

  3. All CAF team campuses maintain a paper record of authorizations, in SDLN sequence, at the C-Site in Kansas City. The documents are generally filed in numerical order by purge year (04, 05, etc.) which are the first two-digits of the SDLN.

    Note:

    The exceptions are the filing of OTIA and DA transmitted authorizations where the authorization is maintained electronically until purged or terminated.

  4. The paper records are purged annually by C-Site in Kansas City. All documents that have the current year (or an earlier year) as the first two digits of the SDLN are destroyed, except for Form 706, U.S. Estate Tax Return, authorizations

  5. OTIA and DA revocations require a CAF screen print of the original authorization.

  6. Other correspondence, e.g., address change for the third party, require actions to update information on the CAF. Once completed, destroy the document.

  7. A practitioner who is updating the address that he/she uses on the CAF is not required to complete new Forms 2848 or obtain the signatures of his/her clients, although a written notification should include the signature of the practitioner.

  8. Authorizations for a Blind Trust are filed separately at the C-Site in Kansas City. Indicate clearly on the authorization that it is for a Blind Trust, so that the C-Site in Kansas City can store it separately.

  9. Authorizations for Form 706, U.S. Estate Tax Return, tax matters are maintained separately at the C-Site in Kansas City. Indicate clearly on the authorization that it is for a Document 706, U.S. Estate Tax Return, issue so that C-Site in Kansas City can store it separately.

21.3.7.20  (10-01-2005)
"CAF Communications"

  1. This section provides information regarding CAF generated letters and notices.

21.3.7.20.1  (10-01-2006)
CAF Notice CP 547

  1. CP 547, We Assigned You a Centralized Authorization File (CAF) Number, is generated when a new CAF number is issued.

  2. All responses to CP 547, We Assigned You a Centralized Authorization File (CAF) Number, are resolved by the CAF function.

  3. If the CP 547, We Assigned You a Centralized Authorization File (CAF) Number, is returned or information is received requesting an update to the third party name, address or telephone number record, take the following actions:

    1. Update the third party record on CAF with the corrected information.

    2. Input the date the information was corrected as the signature date.

21.3.7.20.2  (04-05-2007)
CAF Notice CP 548 A-H

  1. CP 548, Change to Your Representation, is a systemic notice generated from the CAF system to notify the taxpayer of a change to their third party representative. There are six types of notifications.

    • 548A – Disbarred – not being sent at this time

    • 548B – Suspended – not being sent at this time

    • 548C - Undeliverable

    • 548D – Deceased

    • 548E – Retired

    • 548F – Ineligible

21.3.7.20.3  (10-01-2006)
CAF Letters

  1. An Letter 861C, Power of Attorney (Form 2848, Power of Attorney and Declaration of Representative) Incomplete for Processing, can be used when:

    • An authorization form is incomplete for the taxpayer

    • An authorization form is incomplete for a third party

  2. A Letter 1727C, Power of Attorney Representative Number, can be used:

    • To advise the third party of CAF numbers

    • If Form 2848, Power of Attorney and Declaration of Representative, Part II, is incomplete

    • To inform the taxpayer that the POA authorization was rejected and that the Service will continue to deal directly with the taxpayer

  3. A Letter 2475C, Address Change Request, can be used:

    • When a change of address is indicated

    • To obtain corrected information regarding the third party

  4. A Letter 2673C, Representative Response, can be used for:

    • Revocation/withdrawal statements

    • 3 future year recording limitation

    • Limitations of the unenrolled return preparer

    • Representative not eligible to practice

  5. A Letter 2675C, Power of Attorney Termination Response, can be used for:

    • Notifying the taxpayer of a withdrawal

    • Notifying the third party of a revocation

21.3.7.21  (10-01-2006)
Third Party Undeliverable Notices/Correspondence

  1. Determine whether or not the notice is undeliverable or unclaimed.

    1. Unclaimed mail is usually certified mail that has not been claimed by the recipient. Unclaimed does not necessarily mean undeliverable. DO NOT code as undeliverable until all research has been completed

    2. Undeliverable

  2. Undeliverable mail is identified as:

    1. Mail received states taxpayer/representative has moved with no forwarding address

    2. Mail received that states "No receptacle unable to forward"

    3. Attempted – Not Known Unable to forward

    4. No such address return to sender

    5. Not deliverable as addressed – return to sender

    6. Box closed unable to forward

  3. If third party notices or letters are returned as undeliverable:

    1. Check CAF to determine if the authorization is still valid.

    2. If valid, attempt a phone call to the third party.

    3. If contact is established, verify address, make changes as necessary using CC KAFRMR to update address changes, and re-mail the correspondence.

  4. If unable to establish contact with the third party, either phone or send Letter 861C, Power of Attorney (Form 2848, Power of Attorney and Declaration of Representative) Incomplete for Processing, or other applicable correspondence to the taxpayer requesting a current address for the third party. Input a "U" action code using CC KAFRMR and the CAF number.

  5. When making a representative undeliverable, make screen print of completed CC KAFRMR, attach undeliverable correspondence and send to the Kansas C-site to be attached to the original SDLN.

  6. If new information is received to update the third party record, remove the "U" indicator to ensure the third party receives authorized notice copies.

21.3.7.21.1  (10-01-2006)
Undeliverable Third Party Authorization No Longer Valid

  1. If telephone contact with either the taxpayer or the third party reveals there is no longer an association with the taxpayer, do the following:

    1. Request a statement of revocation which may be mailed or faxed to the CAF team for removal of the third party from the taxpayer’s account record.

    2. Ensure the third party is "U" coded.

21.3.7.21.2  (10-01-2006)
Undeliverable Mail/Deceased Third Party

  1. If undelivered mail or other correspondence indicates a third party is deceased, take the following actions:

    1. Access the representative record, using CC KAFRMR and the CAF number, and input indicator "E" for deceased on the third party record.

    2. Access the representative record, using CC KAFRMR and the CAF number, and input indicator "E" for deceased on the third party record. Input the date the record was updated as the signature date.

    3. Destroy the undeliverable item.

21.3.7.22  (10-01-2006)
CAF Unpostables

  1. The instructions for the resolution of CAF unpostables (UPCs) are found in "Job Aids for IRM Part 21."

  2. CAF Program arranges for Information Services to do monthly Utility Runs to close control bases of unpostables, except UPCs 301 and 307, as deemed appropriate by management.

  3. A UPC 301, TIN misma