Form 944Employer's Annual Federal Tax Return, MFT 14, is an annual return. Some business filers qualify for this annual form in lieu of filing the Employer's quarterly Federal Tax Return, the Form 941. Business filers qualify to file Form 944 if their employment tax liability threshold is $1,000.00 or less. The employer must be notified by the IRS of their eligibility to file Form 944. The employer has until April 1st of the current tax year to opt in or opt out of filing Form 944. Form 941 and Form 944 are interchangeable per disclosure guidelines. Master File will send a record to the CAF program indicating that the taxpayer has opted to stay as a 941 filer or opted to be a 944 filer. At this point the CAF program will recognize the Form the taxpayer has accepted and purge the remaining Form 941/944 that was not chosen.

Figure 21.3.7-1

There are two types of Civil Penalties which may be loaded to the CAF:

If the following terms are listed on Form 2848/8821, process as civil penalty.

Follow the chart below when processing civil penalties to the CAF.

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).

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.

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

Student attorneys must attach a copy of Special Orders letter from the Office of Professional Responsibility authorizing practice before the IRS and submit the authorization to the CAF. The designation level input is: Student attorney "K" and Student accountant "L" . If the Special Orders letter from the Office of Professional Responsibility is not attached to the Form 2848, do not process to levels K or L. Return the Form 2848 and request the missing information.

These designations appear on CC CFINK but are not currently an option on Form 2848, Power of Attorney and Declaration of Representative, if the student does not identify themselves as a "K" or an"L" and you can determine they are a student practitioner, process using the applicable "K" or "L" . This allows for clear identification of limited authority to practice and lays the foundation for future systemic purges in accordance with expired Special Orders letter " "

An "R" indicator is never input for a student attorney or student accountant.

Participating students may practice before the IRS within specified limits. Clinic participation is approved by the Taxpayer Advocate Service and practice is approved by a Special Orders letter issued by the Office of Professional Responsibility

Process authorization for any of the following to MFT 31:

Third Party Authorizations expire with the death of the taxpayer and must be deleted from the CAF and with concurrence of the team manager. A new authorization must be submitted and signed by someone now authorized to sign on behalf of the deceased taxpayer.

Indicators of deceased taxpayer may include but are not limited to:

If the signer signs as the executor, administrator, or trustee on behalf of the taxpayer under penalty of perjury, process the document. Do not reject for documentation.

If signed by surviving spouse, process the document. Do not reject for documentation. Route attached Form 56 to Entity.

Form 2848, Power of Attorney and Declaration of Representative, attached to Form 56 are recorded on the CAF. The authorizations may be signed by the following parties involved in a will or an estate:

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

Input "DECD" in the SUFFIX field on the CAF screen when processing

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:

Use MFT 74 for authorizations concerning Form 5500, Form 5500-C/R, Form 5500EZ and . 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.

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.

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

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

If a POA, referring to EO applications or qualifications ( Form 1023/1024/1028) is received, send it to:

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

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

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.

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

Only one representative is authorized to receive and inspect the blind trust’s tax information. See IRM 3.28.3.3.2.1(2), Document Perfection Procedures.

When the CAF Teams receive authorizations regarding Form 2553, Election by a Small Business:

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/Oral TIA, for additional information

For Oral TIA (OTIA or paperless Form 8821, Tax Information Authorization), See IRM 21.3.7.6.7., Oral (OTIA) Processing.

Specific use is indicated on Form 2848, Power of Attorney and Declaration of Representative or Form 8821, Tax Information Authorization, line 4. An entry must be made on line 4 for a specific issue authorization to be valid.

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

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

Specific use requests should be treated as classified waste unless they are a specific information request. See IRM 21.3.7.9.2.(1) for definition of such requests.

This section explains the instructions on how the CAF Function will resolve Unpostable Conditions (UPCs). The CAF Function can only resolve the UPCs 301 and 307.

All Campuses must work their unpostable listing each week.

On a weekly basis send an email report to the Headquarters Analyst by close of business every Monday. The report will include the following:

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

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.

Once processed, 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.

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.

Input CC KAFRMR to call up the CC UPRCF screen.

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

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.

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:

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

This section provides instructions for processing authorizations received from suspended, disbarred or reinstated representatives.

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

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.

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

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

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.

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.

Essential elements of an authorization 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:

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.

A listing of clients and respective TINs with a cover sheet requesting withdrawal by a third party is acceptable only if the representative provides a signed and dated written statement withdrawing from representation on noted clients and the repreesentative clearly and unambiguously notes the clients for whome the representtive is withdrawing his/her representation..

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

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

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.

Prior to deleting the authorization:

Generate Letter 2675C, Power of Attorney Termination Response, Letter 3064C, IDRS Special Letter, or appropriate IDRS letter to:

To delete the authorization, using the CC CFINK screen printed above:

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.

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

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.

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.

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.

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

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

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

the following section provides information for working a CAF 77 request.

Determine whether or not the notice is undeliverable or unclaimed.

Undeliverable mail is identified as:

If third party notices or letters are returned as undeliverable:

If unable to establish contact with the third party, either phone or send Letter 861C, Power of Attorney (Form 2848), 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.

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. In cases where the SDLN number has been purged by files, do not classify as waste. Enter a new SDLN on the undeliverable correspondence. Update rep-prac-cd with U on the UPRCF command code format and add the new SDLN. Send to files.

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

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

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

An authorization must contain certain essential elements. A request for an authorization not containing these essential elements is considered invalid; follow the procedures below.

For incomplete Form 2848, Power of Attorney and Declaration of Representative, make one attempt to contact the taxpayer by telephone for the missing information. Document the contact or attempt (if the contact was unsuccessful) on the form using local phone call guidelines.

For International processing, if the POA is invalid and the taxpayer cannot be reached by telephone, make one contact to representative via telephone or fax for the missing information. Document the contact or attempt (if the contact was unsuccessful) on the form.

If essential elements 1 - 5 are not present, the document must be returned to the taxpayer. If essential element 6 is not present, it must be returned to the representative; the following IRM references provide a complete list of the essential elements:

CAF tax examiners must solicit the third party for corrective action(s) by telephone, fax, and/or by correspondence. Use the following guidelines to contact the third party when any of the following information listed below is missing:

If the Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, is valid but unprocessable, make one attempt to contact the representative by telephone for missing or incomplete information that can be obtained verbally. Document the contact or attempt (if the contact was unsuccessful) on form using local phone call guidelines. Documentation should include: time of call, outcome of call (i.e. busy, no answer etc).

If the telephone contact is unsuccessful or the missing or incomplete information cannot be obtained verbally, reject the form by fax, Letter 861C, Power of Attorney (Form 2848) Incomplete for Processing, or other applicable correspondence.

When an authorization is returned to the representative, input an Issue to Accounts Management Services (AMS) on the taxpayer's account. Be sure to include:

This section provides procedures regarding the return of authorizations when information is missing or incomplete. In distinguishing when an authorization must be returned to the taxpayer and when it may be returned to the third party, remember that only the taxpayer may grant the authority and certain information must come from the taxpayer.

If information is missing for one or more of the taxpayers or representatives and information is complete for others, timely process the processable taxpayer(s) or representative(s) listed prior to rejecting for the missing information. If a form is only partially processed, annotate "Processed" next to the name and address of the taxpayer(s) and/or representative(s) processed.

For International processing, the incomplete/missing information authorization will be returned to the third party representative, not the taxpayer.

When an authorization is returned to the representative, input an issue to AMS (Accounts Management Services) . Include the representative name, type of form returned, tax period and In one sentence, include why the form is being returned.

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

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

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:

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.

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

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

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

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

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

When two TIN’s merge and the "FROM ACCOUNT" has a CAF indicator, the merge is completed and a CP 222, TIN Change on a CAF Account, is generated, identifying the "FROM TAX MODULES" that have a CAF indicator.

The CP 222,TIN Change on a CAF Account, generates for the "TO TIN" , referencing the "FROM TIN." The tax modules are identified by MFT and tax period.

When the CP 222,TIN Change on a CAF Account, is received, update the taxpayer data on the CAF system with the new "TO TIN." The taxpayer on the CAF system has the old "FROM TIN." Follow the procedures in IRM 2.4, IDRS Terminal Input, to correct the TIN.

When two TIN’s merge and the "FROM ACCOUNT" has a CAF Indicator, the merge is completed, and a complete transcript, titled "MRGE-CAF" is generated.

The MRGE-CAF transcript is generated for the "TO TIN" and the sort DLN is the TC 005 DLN.

When the MRGE-CAF transcript is received, update the taxpayer on the CAF system with the new "TO TIN" . The taxpayer on the CAF system has the old "FROM TIN."

Follow the procedures in IRM 2.4 , IDRS Terminal Input, to correct the TIN.

An EP-CAF-ACT transcript is generated when a successful TIN change is completed on the EPMF and the "FROM ACCOUNT" has a TC 960 posted.

The EP-CAF-ACT transcript is for a TIN change and is created when the "FROM" account has a CAF indicator. The transcript is a specific tax module for the "TO TIN" with the "FROM TIN" noted.

When the EP-CAF-ACT is received, update the taxpayer on the CAF system with the new "TO TIN." The taxpayer on the CAF system has the old "FROM TIN."

When both TINs have the same MFT, plan number and plan year ending, and both modules contain a TC 960 from different campuses, a transcript is generated. The transcript is titled NOMRG-848. If both modules contain a TC 960 from the same campus, a transcript titled NOMRG-846 is generated.

The NOMRG-848 and NOMRG-846 transcript are complete transcripts for both the "FROM TIN" and the "TO TIN."

When the NOMRG-848 is received, verify the processing of a TC 960. Delete the tax module that has the TC 960 posted to the "FROM TIN." After the TC 960 is deleted from the "FROM TIN," route the case to the Correspondence Control EO Entity function to merge the accounts at: Internal Revenue Service, Ogden Correspondence Control/EO Entity, 1973 No. Rulon White Blvd., M/S 6273, Ogden, UT 84201.

When a successful Plan Number change is completed on the EPMF and the "FROM ACCOUNT" has a TC 960 posted, a transcript is generated. The transcript is titled EP-CAF-PLN.

The EP-CAF-PLN transcript is for a Plan Number change and is created when the "FROM PLAN" has a tax module with a TC 960 posted. The transcript is for a specific tax module for the "TO PLAN" with the "FROM PLAN" noted.

When the EP-CAF-PLN is received, the TIN on the CAF system is correct, however, the Plan Number is the "FROM PLAN." Update the Plan Number on the CAF with the new "TO PLAN" Number.

When both Plan Numbers have like plan year endings and both modules contain a TC 960 from different campuses, a transcript is titled DOC 64-848.

If both modules contain a TC 960 from the same campus, a transcript titled DOC 64-846 is generated. The DOC 64-846 transcripts are complete transcripts for both the From Plan and To Plan.

When the DOC 64-848 is received, identify the campuses that process the TC 960. 'Have the campus with the TC 960 posted to the From Plan delete its tax modules. After the CAF in the other campus has been deleted, route the case to the Correspondence Control/EO Entity function to re-merge the plans.

Follow the procedures in IRM 2.4 , IDRS Terminal Input, to correct the TIN, Plan Number and delete tax modules.

Suppression Code 1 has been eliminated.

Suppression indicator code 2 is used to override the TIN/NAME Control. When a named control mis-match occurs, place a 2 in the SUPPRESS 96X field. To override the TIN/NAME Control check against the NATIONAL ACCOUNTS PROFILE (NAP) when the name control does match the TIN information.