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

Manual Transmittal

September 13, 2013

Purpose

(1) This transmits revised IRM 21.3.7, Taxpayer Contacts, Processing Third Party Authorizations onto the Centralized Authorization File (CAF).

Material Changes

(1) Editorial Changes made throughout IRM 21.3.7.

(2) IRM 21.3.7.1.2 Removed via e-services DA and e-help desk information due to DA retirement.

(3) IPU 13U1088 issued 06-13-2013 IRM 21.3.7.1.3(5)(c) Updated International CAF Philadelphia fax numbers.

(4) IRM 21.3.7.1.3(6) Added requirement to forward International receipts received in Memphis or Ogden to Philadelphia within 24 hours.

(5) IRM 21.3.7.2.1(1) Added the title of the Letter 861C

(6) IRM 21.3.7.3(1) Removed EIN since it is the same as a TIN.

(7) IPU 12U1970 issued 12-20-2012 IRM 21.3.7.4.1(1) Added to second bullet, telephone number or fax number and in the Note, Removed CAF function POA help line and replaced with IRS Toll-free phone line.

(8) IPU 13U0725 issued 04-11-2013 IRM 21.3.7.4.1(1) Added Caution after bullets addressing input when physical street address and PO Box are provided on authorizations.

(9) IRM 21.3.7.4.1(1) Clarified that forms and written correspondence can be received via fax or mail.

(10) IPU 12U1703 issued 10-09-2012 IRM 21.3.7.5.1(4)(a)(7) Added Command Code INOLE as research.

(11) IPU 13U0725 issued 04-11-2013 IRM 21.3.7.5.1(4)(b) Updated to include the CAF employee input of the state jurisdiction code and license, bar and/or enrollment number to the CAF database when applicable.

(12) IRM 21.3.7.5.1(1) Corrected the title of IRM reference 21.3.7.13.

(13) IRM 21.3.7.5.1(4)(a)(7) Added to Note: "with the same tax matters listed" to aid in processing the most recently signed date POA/TIA becomes the valid authorization.

(14) IRM 21.3.7.5.1(4)(b) Corrected Level K title to Student Attorney or CPA.

(15) IRM 21.3.7.5.1(4)(c) Corrected the title of IRM reference 11.3.3.1.1.

(16) IRM 21.3.7.5.1(4)

(17) IPU 13U0725 issued 04-11-2013 IRM 21.3.7.5.3 Added new paragraph (2) and Note to include procedures for rejecting Form(s) 8821 when the taxpayer and third party are the same and subsequent paragraphs renumbered.

(18) IPU 12U1970 issued 12-20-2012 IRM 21.3.7.5.3(1) Added procedure to include the IRS received date of March 1, 2012 or later to the rejection of Form 2848 based on a prior revision and renumbered subsequent paragraphs.

(19) IPU 13U1088 issued 06-13-2013 IRM 21.3.7.5.3.1(2) Clarified Form 8821 joint filers instructions.

(20) IPU 13U1088 issued 06-13-2013 IRM 21.3.7.5.3(4) Clarified the instruction regarding the name match, Updated IRM reference and Added a Note and a Reminder for processing sole proprietors authorizations.

(21) IPU 12U1703 issued 10-09-2012 IRM 21.3.7.5.3(11)(a) Edited the sentence to read as follows: For business accounts, a signature, date and title is required when applicable. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

(22) IPU 12U1970 issued 12-20-2012 IRM 21.3.7.5.3(14) Deleted 2nd sentence.

(23) IRM 21.3.7.5.3(14) Added a note, effective September 2, 2013 Disclosure Authorization (DA) application retired from e-services.

(24) IRM 21.3.7.5.3.1(2) Added the word immediately after effective.

(25) IRM 21.3.7.5.4(1) Corrected the title of Publication 216.

(26) IPU 13U0725 issued 04-11-2013 IRM 21.3.7.5.6(2) Updated to include the PTIN number as a required entry to the CAF database for level (h) and (i) designations.

(27) IRM 21.3.7.5.5(1) Added "or Level I" .

(28) IRM 21.3.7.5.6(5)(a) Added "or extensions of period of limitations" to the power to sign tax returns statement.

(29) IRM 21.3.7.6 Corrected the title of Form 706.

(30) IPU 13U1088 issued 06-13-2013 IRM 21.3.7.7 Updated International CAF Philadelphia fax numbers.

(31) IPU 12U1970 issued 12-20-2012 IRM 21.3.7.8.4 Added Taxpayer Advocate Service authority for issuing Special Appearance Authorization letters.

(32) IPU 13U0725 issued 04-11-2013 IRM 21.3.7.8.4 Clarified required documentation needed and changed "Special Appearance" to "Authorization for Student Tax Practice" .

(33) IRM 21.3.7.8.4 Corrected the title to Student Representative.

(34) IPU 12U1703 issued 10-09-2012 IRM 21.3.7.10(2) and (4) Updated procedures to clarify acceptable revoke/w-Withdraw requests.

(35) IPU 12U1703 issued 10-09-2012 IRM 21.3.7.10.1(2), (3) and (4) Removed old (2) and renumbered the rest. Edited to include revocation/withdrawal information that applies to both the taxpayer and the representative. Removed an arbitrary range of tax periods, all years or all tax periods is not acceptable from the representative.

(36) IRM 21.3.7.11.1(2) Clarified that years should be revoked when clearly identified by representative.

(37) IRM 21.3.7.11.1(3) Removed the words (after working) to make it clear that C letter is sent prior to the input of the revocation/withdraw.

(38) IRM 21.3.7.13.1(1)(a) Added a reminder about Disclosure Authorization (DA) retirement.

(39) IRM 21.3.7.13.1(1)(c) Added Bar, License and/or enrollment number (if applicable).

(40) IPU 12U1970 issued 12-20-2012 IRM 21.3.7.13.1(3) Added IRS to date stamped information and added IRM 21.3.7.5.3(1) reference.

(41) IRM 21.3.7.14.2(2) Added the title to the Letter 861C reference.

(42) IRM 21.3.7.14.2(3) Removed information pertaining to rejecting authorization and added FOIA referral for client listing for Letter 1727C.

(43) IRM 21.3.7.14.2(5) Corrected title for Letter 2673C..

(44) IRM 21.3.7–3 and IRM 21.3.7–4 Updated Foreign Country codes to reflect current ISO codes.

Effect on Other Documents

IRM 21.3.7, dated August 26, 2012 (effective October 1, 2012) is superseded. This IRM also incorporates the following IRM Procedural Updates (IPU) - 12U1703 (10-09-2012), 12U1970 (12-20-2012), 13U0725 (04-11-2013) and 13U1088 (06-13-2013).

Audience

All employees performing Centralized Authorization File (CAF) account work.

Effective Date

(10-01-2013)

Ivy S. McChesney
Director, Accounts Management
Wage and Investment Division

21.3.7.1  (10-01-2012)
What is A Third Party Authorization

  1. A third party authorization is a signed document and/or an oral statement made by a taxpayer granting specific authorities to a third party. Third party authorizations include:

    • Form 2848, Power of Attorney and Declaration of Representative,

    • Form 8821, Tax Information Authorization,

    • Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return,

    • Oral Disclosure Consent (ODC), a non-written tax information authorization, or

    • Third Party Designee (also known as Check-box authority).


    These authorizations may be submitted through Disclosure Authorization (DA) within e-services, paper submission via fax or mail or taxpayer contact directly with IRS for oral authorizations.

  2. The Check-box authority election is made directly on the tax Form and is not recorded on the CAF. See IRM 21.1.3.3.1, Third Party Designee Authentication.

  3. Different types of authorization authority are:

    • Representative - An individual that the taxpayer has authorized to represent them before the IRS.

    • Appointee - An individual person or business entity the taxpayer appoints to receive and inspect confidential tax return information.

    • Designee - An individual person that has been designated to receive and inspect confidential tax return information via telephone or Check-box election on a tax return.

21.3.7.1.1  (05-18-2012)
The Centralized Authorization File

  1. The Centralized Authorization File (CAF) is a computerized system of records which houses authorization information from both powers of attorney and tax information authorizations. The CAF system contains several types of records, among them taxpayer and representatives records, tax modules and authorizations.

  2. The CAF contains:

    • Taxpayer name, Taxpayer Identification Number (TIN), name control and signature date,

    • Third Party name, address, telephone number, fax number, name control, CAF number and status information,

    • Type of tax i.e., (MFT)(s) and tax period(s),

    • Employee Plan number, if applicable,

    • Source Document Locator Number (SDLN),

    • Authorization type, i.e., Form 2848, 8821, 706,

    • Representation designation level(s), i.e., A - Attorney, B - Certified Public Accountant (CPA), etc.,

    • Notice Indicator,

    • Authority granted by taxpayer(s) to the representative(s), i.e., disclosure to third parties, substitute/add representatives, and/or sign return.

21.3.7.1.2  (10-01-2013)
Authorizations Recorded on the CAF

  1. Authorizations recorded on the CAF are generally submitted on:

    1. Form 2848, Power of Attorney and Declaration of Representative

    2. Form 706, U.S. Estate (and Generation-Skipping Transfer) Tax Return

    3. Form 8821, Tax Information Authorization

    4. Oral Tax Information Authorization (OTIA), paperless Form 8821

    For Specific Use Exception, See IRM 21.3.7.8.11.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

21.3.7.1.3  (09-13-2013)
Processing Sites (CAF Function)

  1. Domestic third party authorization requests submitted on Form 2848, Form 8821 and/or Form 706 are centralized for processing at two W&I sites:

    • Memphis Accounts Management Campus (MAMC)

    • Ogden Accounts Management Campus (OAMC)

  2. International third party authorization requests are processed at the Philadelphia Accounts Management Campus (PAMC) only, See IRM 21.3.7.7.

  3. Taxpayer Advocate Service (TAS) may have an expedite request that will receive immediate attention. All TAS Expedite authorizations will be marked "TAS Expedite-Hardship Case" and faxed to 801-620–3904 for processing at the Ogden Accounts Management Campus within 24 hours of receipt.

  4. The public submits authorizations to the CAF Function per the Form 2848 or Form 8821Where to File Chart instructions. For a quick reference, see the state mapping table in Exhibit 21.3.7-1 for submitting domestic authorizations.

  5. CAF Unit addresses and fax numbers are:

    1. Memphis Address:
      Internal Revenue Service
      PO Box 268, Stop 8423
      Memphis, TN 38101-0268
      Fax number 855–214–7519

    2. Ogden Address:
      Internal Revenue Service
      1973 N Rulon White Blvd. MS 6737
      Ogden, UT 84404
      Fax number 855–214–7522

    3. Philadelphia Address:
      Internal Revenue Service
      International CAF MS 3–E08.123
      2970 Market St.
      Philadelphia, PA 19104
      Fax number 855–772–3156
      Fax number 267–941–1017 outside United States

  6. The CAF Function that receives the authorization is responsible for processing to the CAF, regardless of the state mapping. EXCEPTION: All International Form 2848 or Form 8821 received in Ogden or Memphis must be forwarded to the Philadelphia CAF Function via fax or mail to the address above within 24 hours.

21.3.7.1.4  (09-23-2011)
Processing Time Frames

  1. Receipts received in the CAF Functions are processed First In First Out (FIFO), regardless of the method used to submit the authorization.

  2. All receipts will be processed within 10 calendar days.

  3. All receipts must be date (automated or manually) stamped.

    Exception:

    International Bulk receipts, which are received in the hundreds to thousands, cannot be automated or manually stamped due to the high volume of receipts. For information on International Bulk receipts, See IRM 21.3.7.7.4 Processing Bulk Shipments.

  4. When fax receipts are dated and time stamped via the fax machine, no further action is required as evidence of receipt.

  5. Receipts received before 2:00 p.m. local time are considered received on the current day. Receipts received after 2:00 p.m. local time are considered received the next business day.

  6. Use the most current IRS received date that is stamped on the authorization.

  7. When unusual circumstances arise, or there is a systemic issue, and you cannot meet the time frame established above, contact the Headquarters CAF Analyst for potential re-routing of work.

21.3.7.1.5  (06-14-2012)
Filing and Maintaining Third Party Authorizations

  1. Send authorization Forms to the C-Site in Kansas City after all actions are taken and the authorization is processed to the CAF. Ship documents by UPS or U.S. Postal Service using the following addresses:

    • Shipping by UPS (trucking or carrier service), is the preferred method and the shipping address for the C-Site is:
      IRS
      335 Geo Space Drive
      Independence, MO 64056

    • If mailing by the U.S. Postal Service (not using a trucking or carrier service), the mailing address for the C-Site is:
      IRS
      333 W. Pershing Rd., Stop 6700CV
      Attention: C-Site
      Kansas City, MO 64108

  2. Send the following types of documents for attachment to the original SDLN (Source Document Locator Number) after the requested action is taken, such as:

    • Revocations

    • Deletions

    • Suspensions

    • Disbarments

    • Any information being added to original SDLN

  3. Authorizations are maintained in SDLN sequence, at the C-Site in Kansas City. The documents are filed in numerical order by purge year which is the first two-digits of the SDLN and in document number order, the last two-digits of the SDLN.

    Note:

    OTIA and DA transmitted authorizations are maintained electronically until purged or terminated.


  4. Submit records to the C-Site in Kansas City on Form 3210, Document Transmittal. The volume and SDLN number of each file must be included in the box.

  5. OTIA and DA revocations require a CAF screen print of the original authorization. Revoke using original SDLN number and send to files.

  6. 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 it can be maintained separately. Blind Trust cases are worked by the Ogden CAF Function.

  7. Authorizations for Form 706, U.S. Estate (and Generation-Skipping Transfer Tax Return, tax matters are filed separately at the C-Site in Kansas City. Indicate clearly on the authorization that it is for a Form 706, so it can be maintained separately.

  8. Emergency requests, i.e., Court cases, TAS cases, etc., may be faxed directly to the Kansas City C-Site along with a completed Form 2275, Records Request, Charge and Recharge. The fax number is (816) 257–0041. To contact the Kansas City C-Site directly, call (816) 257–7744.

21.3.7.1.6  (10-01-2012)
Related IRM's and Other References

  1. The Centralized Authorization File (CAF) assigns a unique identifying number to the taxpayer(s) authorized representative(s) on Form 2848, Power of Attorney and Declaration of Representative, or the taxpayer(s) appointee(s) on Form 8821, Tax Information Authorization, and maintains the data in relation to the appropriate taxpayer accounts and tax modules. This system is part of Integrated Data Retrieval System (IDRS) processing.

  2. For information regarding the mechanics for completing certain actions, refer to:

    • IRM 2.3.31, Command Codes CFINK, RPINK, KAFFQ AND KAFTQ for CAF Inquiry,

    • IRM 2.4.7, Command Codes KAFRM, KAFAD, UPTCF, UPRCF, UPNCF, FRM3P, ADD3P and KAFMC for CAF Update,

    • IDRS Command Code Job Aid http://serp.enterprise.irs.gov/databases/irm-sup.dr/job_aid.dr/command-code.dr/idrs_command_codes_job_aid.htm located on the SERP homepage,

    • Document 6209, IRS Processing Codes and Information to research Master File Tax (MFT), Filing Status (FS), and Filing Requirement (FR) codes

    • IRM 2.3, IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

  3. For practitioner authentication over the phone, refer to: IRM 21.3.10.2Authentication and Disclosure Guidelines.

  4. IRM Guidelines for preventing unauthorized disclosures:

    • IRM 11.3.1, Introduction to Disclosure

    • IRM 11.3.2, Disclosure to Persons with a Material Interest

    • IRM 11.3.3, Disclosure of Official Information-Disclosure to Designees and Practitioners

    • IRM 21.1.3, Operational Guidelines Overview

  5. For information on powers of attorney, refer to the following:

    • IRS Publication 947, Practice Before the IRS and Power of Attorney

    • Treasury Department Circular No. 230, Regulations Governing the Practice Before the Internal Revenue Service

    • IRS Publication 216 , Conference and Practice Requirements

21.3.7.2  (09-23-2011)
Taxpayer Research Guidelines

  1. Research is conducted to assist in perfecting an authorization for processing. During research, perfect the document to include any missing information necessary for input. Research must be conclusive or the authorization is rejected.

  2. If the Taxpayer Identification Number (TIN ) is not on the authorization, research to identify the taxpayer using the following Command Codes (CC's):

    • NAMES/NAMEI - queries the National Accounts Profile (NAP) for name and address data, to determine the TIN when the authorization is for individual taxpayers.

    • NAMEE/NAMEB - queries the NAP for name and address data, to determine TIN when authorization is for business taxpayers including employee plans.

  3. Use (CC) CFINK to determine if the authorization is already on file to avoid duplicate processing.

  4. If the authorization has a Social Security Number (SSN) or Employer Identification Number (EIN) but is missing other taxpayer entity information, verify all taxpayer(s) or business entity information, using the following CC's to identify the taxpayer:

    • INOLES/ENMOD - displays Master File entity data. The CC definer determines the kind of data requested. If the primary Taxpayer Identification Number (TIN) is unknown, research can be completed using the secondary TIN when the request is for a joint filed return. These CC's will provide cross reference SSN/EIN information.

      Note:

      When researching taxpayer accounts it may be necessary to research both the valid and invalid sides of master file.

    • INOLEP - displays plan numbers and filing requirements for Form 5500. If the filing requirements indicator is blank, there is no filing requirement. Letters "X" , "Z" or "T" confirm filing requirements exist.

    • EMFOLI - displays the plan number, the year and document locator number of filed returns.

    • IMFOLI/BMFOLI - identifies tax periods and the FYM with filings.

21.3.7.2.1  (10-01-2013)
Third Party Research Guidelines

  1. If the authorization does not provide a CAF number, use Command Code (CC) RPINK to research a third party's record by name. CC RPINK is used to determine if the third party already has an existing number before assigning a new CAF number.

    Note:

    If multiple CAF numbers are found and you are unable to determine the correct CAF number to use, return the authorization to the third party using the CAF IAT letter tool, sending Letter 861C, Power of Attorney, Tax Information Authorization and/or United States Estate Tax Return (Forms 2848, 8821, or 706) Incomplete for Processing, requesting the correct CAF number.

  2. If the authorization provides a CAF number for the representative or appointee, use CC CFINK to verify the third party's CAF number on the authorization is correct. Ensure entity information matches the information provided on the authorization.

    Note:

    If the entity information does not match, use CC RPINK to locate correct CAF number for the representative or appointee and annotate correct CAF number on the authorization.

21.3.7.3  (10-01-2013)
Representative CAF Number Processing

  1. An identifying number is assigned to each third party when a CAF record is established. CAF numbers are unique numbers; different from the third party's TIN (Taxpayer Identification Number) or PTIN (Preparer Tax Identification Number). A CAF number is systemically generated.

  2. A third party can request multiple CAF numbers in order to differentiate between multiple office addresses. The Second Name Line may be used to indicate "Location 1" , " Location 2" , etc.

  3. Requests for multiple locations or CAF numbers must be received separately in writing and must contain:

    • Third party name(s), name variation(s) and dated signature.

    • Existing CAF number(s) and corresponding address(es).

    • A request for additional CAF number(s) and corresponding address(es).

  4. A third party can also request multiple CAF numbers in order to differentiate between related entities.

  5. When assigning a CAF number(s), DO NOT enter titles in the suffix field. (i.e., Atty., CPA, EA, etc.)

  6. Form 2848 representative can only be an individual.

  7. Form 8821 appointee can be an individual or a business entity.

21.3.7.3.1  (02-09-2012)
Assigning CAF Numbers

  1. Prior to assigning a CAF number to a third party, research CC RPINK using the third party's name. This will prevent assigning a number in error.

  2. If the box is checked on Line 2, you must update any new information regarding address, telephone or fax information.

  3. If a CAF number does not exist, add the third party and assign a CAF number by taking the following actions:

    1. Access CC RPINK to verify a CAF number does exist prior to assigning a new CAF number.

    2. If after research, a CAF number does not exist,

    3. Access CC FRM3P to initiate the ADD3P screen,

    4. Enter required third party data on ADD3P screen which will include the SDLN number and date.

    5. A message will be returned "Representative Added NNNN-NNNNNR."

    6. Notate the new assigned CAF number on the authorization in the CAF No. area on Line 2 of the representative(s) information.

    Note:

    When assigning CAF numbers, Do Not enter titles in the suffix field. (i.e., Atty., CPA, EA, etc.).

  4. The following rules apply to assigning CAF numbers:

    • If third party information is misspelled or illegible, do not assign CAF number. Return authorization to third party.

    • You cannot change a CAF number to one that already exists (belongs to another third party). Error message "CAF NUMBER ALREADY EXISTS" will display.

    • CAF number is systematically generated using a 2 digit combination of "03" for all three CAF Functions.

    • The number you are changing cannot be greater than the most recently assigned CAF number by the system. If it is, an error message "NEW CAF NUMBER IS GREATER THAN LAST ASSIGNED CAF NUMBER" will display.

      Note:

      If a CAF number is assigned in error, use the Integrated Automation Technologies (IAT) Letter tool to send Letter 1727C , Power of Attorney Representative Number, to inform the third party a CAF number was assigned in error.

21.3.7.3.2  (11-17-2010)
Providing Lost/Forgotten CAF Numbers

  1. The CAF Function may receive a telephone request for a lost or forgotten CAF number. Research and provide the CAF number as follows:

    • Request his/her name and address to research CC RPINK and CC CFINK

    • Confirm there is an existing CAF number(s) for the caller

    • Authenticate the caller's identity before providing the CAF number over the phone

    • Do not provide the CAF number over the phone if the caller fails to answer the following disclosure probes: Representative's Name, Street Address, City, State and Zip code

    • Advise caller you will mail the CAF number(s) to the address of record if unable to authenticate

    • Use CAF IAT letter tool to send Letter 1727C, Power of Attorney Representative Number

21.3.7.3.3  (09-23-2011)
Merging Multiple CAF Numbers

  1. All CAF merges must be approved and performed by technical leads only. CAF merges will only be performed if you receive direct contact from the representative and the request must be in writing.

  2. The following information is required by technical lead to approve any CAF Merge:

    • A copy of the letter from the representative requesting the merge providing the CAF number to be retained and the CAF number(s) they want to merge

    • Any notices or letters, i.e., CP 547, that are attached to the representatives merge request

    • A CC RPINK screen print(s) of the representative information for both the retaining CAF number and the CAF numbers to be merged

    • A CC CFINK screen print for each CAF number associated with the merge

  3. Once approved, technical leads will use CC UPNCF to process the approved CAF merges.

  4. If additional CAF numbers are identified for the same representative that are not listed on the representative's request, only process what is on the request.

  5. The receiving CAF Function will complete the following consolidating actions:

    Caution:

    The representative's name and name control for each CAF number must match in order to complete the merge. If they do not match, use CC KAFRMR to fix the incorrect name and name control, prior to merging CAF number(s).

    1. Access CC CFINK with the CAF number.

    2. Overlay CC CFINK with CC KAFRMN to merge CAF numbers.

    3. The response is CC UPNCF screen, input all required information in order to complete the merge. See CC UPNCF fields of entry to merge a CAF number and the message that the merge has been completed below:
      UPNCF
      REP-NUMBER ==========>0000-99999R
      REP-NM-CONTROL =======>YALE
      DESIRED-REP-NUMBER> 0000-00008R
      CAF REP: 0000-99999R MERGED WITH NEW CAF REP: 0000-00008R COMPLETE

  6. Use the CAF IAT tool to send Letter 1727C , Power of Attorney Representative Number, to inform the third party of the correct CAF number after the merge is completed.

21.3.7.4  (01-21-2011)
CAF Updates - Taxpayer Record Updates

  1. When Form 2848, Form 8821 or correspondence clearly indicates a taxpayer name change:

    1. Input CC CFINK with TIN.

    2. Overlay CFINK with CC KAFRMT .

    3. Response screen is CC UPTCF. Verify taxpayer name and name control information and overlay fields with correct information. Transmit after SDLN field.

    Note:

    The actions will change taxpayer's name only on the CAF database record. If taxpayer wishes to change his/her name or address of record, he/she must complete and submit Form 8822, Change of Address.

  2. If the taxpayer name on CC INOLES is spelled incorrectly, make a copy of the authorization and route the copy with a printed CC INOLES screen to the Entity Function.

  3. Input DECD in the suffix field when proof of a deceased taxpayer is received.

21.3.7.4.1  (10-01-2013)
Third Party Record Updates

  1. A representative/appointee may submit Form 2848, Form 8821 or correspondence via mail or fax to update their information on the CAF database. Representative/Appointee name(s), address(es), telephone or fax number(s) can be updated in the following situations:

    • The "Check if new" box for address, telephone number or fax number is marked on Line 2 of Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization.

    • Line 2 on Form 2848 or Form 8821 clearly indicates that the third party's address, telephone number or fax number is different than current CAF data and does not check the "Check if new" box.

    • Signed and dated correspondence is received by fax or mail, specifically requesting a change to their third party information.

    Caution:

    If the address contains a physical street address as well as a PO Box, only process the address using the PO Box information.

    Note:

    If representative/appointee contacts the IRS Toll Free phone line, advise representative/appointee that written correspondence must be obtained to process the updated information request.

  2. To update the representative information:

    1. Research CC RPINK if the CAF number is unknown.

    2. Once the CAF number is determined, input CC CFINK with CAF number.

    3. Overlay CC CFINK with CC KAFRMR and transmit, your response screen is CC UPRCF.

    4. CC UPRCF, input the appropriate fields with the updated information. Issue a new source document locator number (SDLN) number and input the date of the representative's correspondence in the date field.

      Caution:

      A new SDLN number must be created. You cannot use the original SDLN number. Write the SDLN number on the correspondence and file it with your regular block of work.

21.3.7.5  (10-01-2012)
Form 2848, Power of Attorney and Declaration of Representative and Form 8821, Taxpayer Information Authorization Overview

  1. Form 2848, Power of Attorney and Declaration of Representative, can only be granted to an individual eligible to practice before the Internal Revenue Service. For information on Powers of Attorney see IRS Publication 947, Practice Before the IRS and Power of Attorney.

  2. Form 8821, Tax Information Authorization, or equivalent, can appoint any third party to receive and inspect account information for the tax matter(s) specified.

21.3.7.5.1  (10-01-2013)
Essential Elements for Form 2848 and Form 8821

  1. There are five essential elements needed to process the Form 2848 and/or Form 8821 authorizations to the CAF database. If an essential element is missing or incomplete, the authorization is invalid. Refer to IRM 21.3.7.13, CAF Communications, Reject/Return Authorization to Taxpayer, for procedures. If essential elements 1, 3, 4 or 5 are not present, the document must be returned to the taxpayer for domestic authorizations. For international authorizations, the document must be returned to the representative.

  2. If only essential element 2 is not present, the document must be returned to the representative for both domestic and international authorizations. Essential element 2 does not apply to Form 8821 .

  3. If required information is missing for some of the representatives identified on Form 2848, take the following actions:

    1. Make a copy of the original Form 2848. Send copy of Form 2848 to the taxpayer for domestic authorizations and to the representative for international authorizations.

    2. Process representative that has provided the required information.

    3. Annotate "Processed" next to the representative input to the CAF database. Apply appropriate coding and SDLN number.

    4. Reject the copy of the authorization, requesting the missing information to process the authorization. Annotate "Processed " next to the representative that was recorded to the CAF database.

  4. Essential elements are:

    1. Essential element 1 The taxpayer's dated signature is required. An electronically signed, printed or stamped signature is not acceptable.

      1. For IMF joint accounts, each spouse must execute his or her own power of attorney or tax information authorization on a separate Form 2848 or Form 8821, to designate a representative/appointee even if the same representative/appointee is being named on the authorization.

      2. For BMF accounts, a signature, date and title is required. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      3. A thumbprint or X with a witness signature is acceptable.

      4. A hand printed (not typed) signature is acceptable.

      5. When the taxpayer signs and dates the Form 2848 before the representative, the signature dates of the taxpayer(s) and representative(s) must be within 45 days for domestic authorizations and within 60 days for authorizations of taxpayers/representatives residing abroad. If the taxpayer's dated signature is more current than the representative’s signature, the 45 and 60 day rule does not apply. As long as the signature dates meet this requirement, the Form 2848 may be submitted and processed at any time.

      6. Form 8821 must be received by the IRS within 120 days of the date it was signed and dated by the taxpayer only when the Form 8821 does not address tax matters.

        Note:

        The only time a taxpayer signature is not required is when a faxed Form 8821 Oral Tax Information Authorization (OTIA) is received from an internal source in the CAF function and line 7 is notated that this is an "Oral Tax Information Authorization" , "Oral TIA" , or "OTIA" . For BMF accounts, the name and title must be notated on the OTIA of the individual granting this authority.

      7. If the Form 2848 is signed by a fiduciary, (e.g., executor/administrator/trustee of a bankruptcy, trustee of a trust/conservator/designee/guardian/receiver/personal representative/person in possession of property of a decedents estate, debtor in possession of assets in any bankruptcy proceeding by order of the court) research CC ENMOD or CC INOLE to verify that the person signing the form matches the second name line.

        Note:

        The document with most recent taxpayer signature date, whether already processed to the CAF database or just received by fax or mail, with the same tax matters listed is the document that has representational authority for the taxpayer.

    2. Essential element 2 - Only applies to Form 2848. The representative's designation under which he or she is authorized to practice before the IRS must be present. Designation types (A - R) are listed below. In addition, the representative must list the Licensing jurisdiction (state) or other licensing authority and Bar, license, certification, registration, or enrollment number, if applicable. The representative's signature and date are also required. For multiple representatives listed on the same form, only one signature date is required; however, all representatives must sign the Form 2848. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      • A - Attorney - enter two-letter state abbreviation, i.e., "NY" for New York, for which they are admitted to practice and associated bar or license number, if any.

      • B - Certified Public Accountant (CPA or LPA) - enter two-letter state abbreviation, i.e., "NY" for New York, in which they are licensed to practice and associated certification or license number, if any.

      • C - Enrolled Agent - enter enrollment card number issued by Office of Professional Responsibility (OPR).

      • D - Officer - enter title of the officer, i.e., President, Vice-President, Secretary, Treasurer, etc.

      • E - Full-time Employee - enter title or position, i.e., Comptroller, Accountant, Bookkeeper, etc.

      • F - Family member - enter relationship to taxpayer, i.e., spouse (husband or wife), parent (mother or father), child (son or daughter), sibling, (brother or sister).

      • G - Enrolled Actuary - enter the enrollment card number issued by the Joint Board for the Enrollment of Actuaries.

      • H - Unenrolled Return Preparer - Enter your PTIN.

      • I - Registered Tax Return Preparer - Enter your PTIN

      • K - Student Attorney or CPA - Enter LITC or STCP and attach copy of Authorization for Student Tax Practice letter from TAS.

      • R - Enrolled Retirement Plan Agent - enter the enrollment card number issued by OPR.

        Note:

        The Office of Professional Responsibility (OPR) may request designation level changes specific to a recorded authorization. Do not accept any CAF designation changes from any other functional areas, including Return Preparer Coordinator (RPC), Criminal Investigation (CI), and Treasury Inspector General for Tax Administration (TIGTA). Refer the requestor to OPR.

    3. Essential element 3 - Specific tax matter(s), i.e., type of tax or tax form number, is required. Specific (or inclusive) Period(s) is/are required. Refer to IRM 11.3.3.1.1(3)(d), General Requirements for Disclosure to Designee. All tax periods listed on an authorization are input whether displayed on CC IMFOL/BMFOL or not.

      Note:

      Use of the four digit year (i.e., 2008) generally is acceptable for both calendar year and fiscal year taxpayers. If the authorization does not provide a calendar year or fiscal year ending month use the fiscal year month as established for the entity.

    4. Essential element 4 - Clear identification of the taxpayer, i.e., name, address, taxpayer identification number is required. The presence of two of the three identifiers is sufficient. Research can be done to locate the third identifier.

    5. Essential element 5 - Clear identification of the third party, i.e., name and address is required. A CAF number is not required.

      Note:

      If a business entity is named as an appointee authorized to receive tax information, this will include all employees of the named business entity and a list is not required.

21.3.7.5.2  (10-01-2012)
Form 2848 and Form 8821 Screening, Coding and Editing

  1. Stamp each form or correspondence with TE Identification number and date of closing action.

    Note:

    An exception is given to Philadelphia International CAF Function for bulk inventory receipts.

  2. Validate essential elements for Form 2848 and Form 8821 to ensure processability.

  3. Code the authorization once you have determined it can be processed. The requirement to code is manager's discretion.

  4. Annotating the SDLN is always required and entered on the top portion of the authorization. The SDLN is constructed as follows:

    1. Digits 1 and 2 represent the purge year. Current, prior, and future tax year/period requests, the purge year will be determined by the signed date year plus 7 years and only 3 future years can be input.

    2. Digits 3 through 6 represent the control cycle processing week.

    3. Digits 7 and 8 represent the location code. The location codes are listed below.

      Campus Mail and Fax OTIA DA
      MAMC 49 61 or 72 63 or 64
      OAMC 29 82 or 83 92 or 93
      PAMC 28 25 54 or 55

    4. Digits 9 through 11 represent the blocking series. A block consists of 100 documents.

    5. Digits 12 and 13 represent the document number of the blocking series. The first document begins with 00 and ends with 99 within the same purge year, control cycle, and block number. A block consists of 100 documents.

  5. Name Control (IMF) and (BMF) The Name Control of the individual or business entity will be determined by using the current name line on CC INOLES.

    1. There are 3 fields on master file that provide IMF Name Controls: Current IMF N/C , IMF N/C , and SSA N/C .

    2. There are 2 fields on master file that provide BMF Name Controls: Current BMF N/C Prior BMF N/C .

    3. There are 2 fields on master file that provide EPMF Name Controls: Current EPMF N/C and Prior EPMF N/C

      Note:

      If the name and name control on the authorization does not match any of the Name and Name Controls on CC INOLES , then reject the authorization back to taxpayer for domestic and the representative for international.

  6. Fiscal Year Month (FYM)- Verify that the FYM on the authorization matches the FYM on the entity modules. If they do not match, you must annotate the correct FYM on the authorization and process the authorization with the correct FYM.

  7. Third Party- The third party's address, city, state and zip code must be present. If the street address is not present:

    1. Research using CC RPINK and edit on form.

    2. If after research you can not identify or confirm the third party's address, return the authorization for clarification.

  8. Determine the third party designation and code to the left of the third party name.

  9. If you receive a Form 2848 for a Form 1040 series return with Designation Level D (bona fide officer) checked for one or more representative(s), reject the Form 2848 for any such representative. Individuals do not have officers.

    1. Level D should provide the title of the officer of the company in the licensing jurisdiction column, i.e., President, Vice President, Secretary, Treasurer, CEO, CFO etc.

  10. If you receive a Form 2848 for a Form 1040 with Designation Level E, (full-time employee) checked for one or more representative(s), you must research to ensure there is a IMF and BMF relationship. A full-time employee's authority to represent a taxpayer is tied to their business relationship with the taxpayer and the employee is not permitted to represent the taxpayer unless the representation relates to the operation of the business.

    Note:

    Full-time employees should provide the title or position they hold in the taxpayer's business in the licensing jurisdiction column, i.e., bookkeeper or comptroller.

    1. Use the If And Then chart below to assist in processing Level E Representation.

      If And Then
      The Form 2848 indicates Level E
      • The authorization provides an SSN and EIN

      • Tax matters include both IMF and BMF issues

      • Search IDRS to verify if the EIN is associated with a sole proprietorship, partnership or corporation and

      • If the EIN is associated to a sole proprietorship, process the Form 2848 for both IMF and BMF tax matters to the CAF database.

      • If the EIN is not associated to a sole proprietorship, reject the Form 2848, requesting separate authorizations because the taxpayers are not the same and the full-time employee generally cannot represent the IMF.

        Exception:

        If the full-time employee is the named representative on Form 2848 for a partnership (Form 1065) or S Corporation (Form 1120S), the full-time employee also may represent an individual taxpayer who is a partner in the partnership or shareholder in the S Corporation.

      The Form 2848 indicates Level E
      • The authorization provides only an SSN (no EIN) and

      • Tax matters include both IMF and BMF issues

      • Search IDRS for a cross reference EIN and

      • If the EIN is for a sole proprietorship, process the Form 2848 for both IMF and BMF tax matters to the CAF database.

      • If cross reference EIN is not found, reject the Form 2848 to request separate authorizations, one for the IMF and one for the BMF.

        Note:

        You must have both Form(s) 2848 to process to the CAF database. In addition, both Forms 2848 must authorize the same named representative and must be signed by the same taxpayer.

      The Form 2848 indicates Level E
      • The authorization provides only an SSN (no EIN) and

      • Tax matters include only IMF

      • Search IDRS to locate a sole proprietor EIN then research CC CFINK to verify the named Level E is established for the sole proprietorship.

      • If found, process the Form 2848.

      • If not found, reject the Form 2848 for the associated BMF tax matters.

    2. If you are rejecting the Form 2848 in situations listed above, inform the taxpayer that the POA can not be processed as submitted due to missing information. Request the taxpayer to resubmit the rejected POA along with the BMF EIN if a POA was submitted previously for business matters or request the taxpayer to resubmit the IMF tax matters POA along with the BMF tax matters POA.

  11. Designation Level F - Family Member must specify relationship to the taxpayer in the licensing jurisdiction column on page 2 of Form 2848:

    1. An individual can represent members of his/her immediate family.

    2. An immediate family member includes the following: spouse (husband or wife), child (son or daughter), stepchild, parent (mother or father), grandparent, grandchild, brother, sister, stepbrother or stepsister of the individual.

    3. In general, a family member such as uncle, aunt, niece, nephew or cousin are not considered an immediate family member: however, under certain circumstances, these family members may qualify. Refer these cases to your Lead or Manager to contact Headquarters for direction.

    4. If you receive a Designation Level F and in the licensing jurisdiction column it states guardian or guardianship, a copy of the Court Appointed designation must be attached to Form 2848 in order to process the authorization. If the Court appointed designation is not attached, reject the Form 2848 for this missing information.

    5. If the relationship information is not present in licensing jurisdiction column on page 2 of the Form 2848, reject the authorization for this missing information.

  12. If you receive a Form 2848 for Form 1040 with Designation Level G (the Enrolled Actuary), the enrollment card number must be entered in the Bar, license, certification, registration, or enrollment number column, Part II Declaration of Representative.

  13. Licensed Public Accountant (LPAs) - An individual who is duly qualified to practice as a CPA (Certified Public Accountant) in any State, territory, or possession of the United States or the District of Columbia may represent a person before the IRS unless that individual has been suspended or disbarred from practice before the IRS. In many states, a registered or licensed public accountant (LPA) has the same rights and privileges as a CPA. An LPA in these states is eligible to practice before the IRS by virtue of their public accountant's license. The following is a non-exclusive list of states where a LPA has the same rights and privileges as a CPA:

    • Alabama

    • Alaska

    • Arkansas

    • California

    • Colorado

    • Connecticut

    • Hawaii

    • Idaho

    • Maine

    • Montana

    • New Hampshire

    • New Jersey

    • New York

    • North Dakota

    • Ohio

    • Oklahoma

    • Oregon

    • Pennsylvania

    • Rhode Island

    • South Dakota

    • Tennessee

    • Vermont

    • West Virginia

    Note:

    For the State of Oregon only - Any person who holds an Oregon public accountant’s license, but who qualified for, and applied to take, the Uniform CPA examination before January 1, 2002, is eligible to practice before the IRS. In contrast, any person who holds an Oregon public accountant’s license, but who has not qualified for, or applied to take, the Uniform CPA examination before January 1, 2002, and is not otherwise qualified to practice before the IRS, is not eligible to practice before the IRS.


    LPAs from the above states may file a Form 2848 and use CPA Designation Level "B" . The LPA should, but is not required to, place an asterisk (*) next to the designation level with an explanation that they are an LPA. Once received in the CAF Function, these cases will be input to the CAF database using the CPA Designation Level B.

  14. LPAs in the following states do not have the same rights and privileges as a CPA (Certified Public Accountant). They are not eligible to practice before the IRS unless the LPA is also an attorney or enrolled agent, enrolled retirement plan agent or enrolled actuary. LPAs (or RPAs) in the following states are not eligible to practice as CPAs before the IRS are:

    • Delaware

    • Illinois

    • Iowa

    • Kansas

    • Michigan

    • South Carolina

      Note:

      Public Accountants in Illinois and Michigan may be known as "Registered" Public Accountants (RPA) instead of a LPA.

  15. Both lists are non exclusive as a determination has not been made with respect to LPAs in the remaining states, the District of Columbia and U.S. Possessions.

  16. If you receive a Form 2848 from another state other than listed above and the LPA is using the CPA "B" Designation Level, give to lead or manager to contact OPR at (202) 927-3397 for a determination on whether the use of the CPA Designation Level is appropriate.

  17. Form 2848 , Line 5, Acts Authorized, may limit, or give additional, authority to the taxpayers representative(s).

    1. If Form 2848, Line 5, grants any authorization other than disclosure to third party, signature or delegation, or limits any authorization inherent in the Form 2848 , code an "M" (Modified) in the left margin next to box 5.

    2. If Form 2848, Line 5, grants authority to sign tax returns, code with an "S" in the left margin beside the representative(s) name(s).

      Note:

      Pursuant to Treasury Regulation Section 1.6012–1(a)(5), an individual taxpayer required to file an income tax return other than a Form 1040NR , must indicate on Form 2848, Line 5, that the representative(s) is authorized to sign the return and must give the specific reason for the agent's signature.
      See IRM 21.3.7.5.3 for the acceptable reasons.

      Note:

      Do not code an "S" for a third party who is an Unenrolled Return Preparer (Level H), Registered Tax Return Preparer (Level I), or Student (Level K).

    3. Otherwise, code a "U" (unmodified) in left margin next to box 5.

    4. On the KAFAD screen, the UN/MOD field is already automatically populated with a "U" . If you have coded the document with an "M" , change the "U" to "M" .

    5. If Form 2848, Line 5, grants authority to substitute/delegate authority, code a "D" (Delegate) in the left margin beside the representative(s) name(s).

      Note:

      Do not code a "D" for a third party who is an Unenrolled Return Preparer ( Level H), Registered Tax Return Preparer (Level I), Student (Level K).

    6. If Form 2848, Line 5, grants authority to substitute/delegate authority and the authority to sign tax returns, code both "D" (Delegate) and "S" (Sign) in the left margin beside the representative(s) name(s).

    7. If there are multiple representatives listed on the Form 2848 and their authorizations vary, they must be coded individually:

    8. If a Form 2848, contains a combination of representatives with modified and unmodified authorizations, do not input as one document. Take the following actions:

      1. Photocopy authorization.

      2. Create a separate SDLN number for each document.

      3. Process the representative(s) information having the unmodified authority to the one document.

      4. Process the representative(s) information having modified authority to the second document.

  18. If the authorization specifies copies of notices should be sent to a third party.

    1. If the box to receive notices and communications on Form 2848 is checked, code an "N" (notice indicator) to the left of the third party name and address requesting to receive notices.

    2. Form 8821, line 5, the taxpayer is instructed to check either 5a or 5b regarding copies of notices. Assign notice privileges to the first third party listed only when box 5a is checked unless notices are already assigned to the same third party for an existing Form 2848.

    Note:

    A module can carry only two "N" indicators.

  19. Effective immediately, the taxpayer can no longer specify to have a third party receive their tax refund(s) on their behalf and Line 6 is now titled as Retention/revocation of prior power(s) of attorney on Form 2848.

    Note:

    The three CAF processing sites are no longer inputting taxpayer requests to have refund checks sent to their representative. Requests made on forms submitted and accepted by the three CAF processing sites prior to the release of the October 2011 version of the Form 2848 will, however, remain on the CAF until the Form 2848 is withdrawn, revoked, or removed based on regular retention schedules.

21.3.7.5.3  (10-01-2013)
Form 2848 and Form 8821 Research and Processing

  1. The CAF processing sites will reject Form 2848 with a revision date prior to October 2011 unless the IRS receive date is prior to March 2, 2012.

    Example:

    Form 2848 is submitted using March 2008 revision and is received in CAF on December 1, 2012. The form is marked, e.g. stamped or "For IRS Use Only" box is filled out, received by IRS in September 2010. This form will be processed to the CAF database.

  2. The CAF processing sites will reject Form 8821 when line one, Taxpayer information and line two, Appointee are the same. Return all Forms 8821 to the taxpayer using Letter 861C and provide the taxpayer with the following reason for rejection:

    You do not need to submit a Form 8821, Tax Information Authorization, to inspect or receive your confidential tax information. Additionally, please note that the IRS sends all original notices or written communications concerning your account to you (the taxpayer) at your last known address.

    Note:

    In cases where there is a clear indication that the form was filed as a means of protection from identity theft or fraud, acknowledge by including Publication 4535, Identity Theft Protection and Victim Assistance, as an enclosure to your rejection letter.

  3. Use the CAF IAT (Integrated Automation Technologies) tools available on your IAT Task Manager (ITM) to research IDRS and process all Authorizations to CAF.

  4. Line 1, Verify and enter taxpayer or business entity information. When the name on the request does not match the name shown on CC INOLES, and proper research determines the TIN is the correct taxpayer, use the name as shown on CC INOLES and update CAF information to match. Refer to IRM 21.3.7.4.

    Note:

    Allow processing of Form 2848 and/or Form 8821 when it can be determined through research that the taxpayer is a sole proprietor and lists both their Social Security Number (SSN) and their Employer Identification Number (EIN). As a sole proprietor business, the taxpayer files a tax return that includes Schedule C income and the matters they are authorizing the listed representative/appointee the authority includes both their individual and business tax matters.

    Reminder:

    When researching a business EIN of a sole proprietor, there would never be an income tax liability tax return requirement associated with the EIN, ie. Form 990, Form 1065, or Form 1120. You may see filing requirements that include but not limited to Forms 720, 940, 941, 943, 945 or 2290 associated with a sole proprietor EIN. CC INOLES research of the SSN should cross reference to the EIN.

  5. Line 2, Verify and enter representative/appointee information provided on Line 2. If the representative/appointee has not provided their CAF number, complete research using CC RPINK prior to assigning a CAF number. Line 2 of Form 2848 includes a check box for the representative to receive notices and communications. If the box is checked to receive notices then enter the appropriate "N " code to allow the representative to receive notices on behalf of the taxpayer. No more than two representatives can be authorized to receive notices.

  6. Line 3, Verify and enter tax matter information. Input MFT code of the tax form along with the year(s) and/or period(s) requested.

    Exception:

    "Disregard the Line 3 TEFRA statement, 1065 and consequential adjustments per Treasury Regulation 301.6223 (c) -1 (e)" when processing and do not reject for Form 1065.

    Note:

    If research identifies MFT 31 for the years/periods requested refer to IRM 21.3.7.8.5, MFT 31 Authorizations

    .

  7. Fiscal Year Month (FYM), Verify that the FYM on the authorization matches the FYM on the entity modules. If they do not match, annotate the correct FYM on the authorization and process the authorization with the correct FYM. This includes Civil Penalty modules.

    Note:

    Do not load past the taxpayer's date of death.

  8. Line 4, Verify Specific Use. Specific Use is not loaded to the CAF. Treat as classified waste.

  9. Line 5, Form 2848, verify Acts Authorized information which allows the taxpayer to grant additional authority or limit authority to the representative(s). Refer to IRM 21.3.7.5.4. Pursuant to Treasury Regulation Section 1.6012 - 1(a)(5) , an individual taxpayer required to file an income tax return other than a Form 1040NRmust indicate on Form 2848, Line 5, that the representative(s) is authorized to sign the return and must give the specific reason for the agent’s signature. The acceptable reasons that should be placed on Line 5, Acts Authorized, of Form 2848 are:

    • Disease or injury,

    • Continuous absence from the U.S. (including Puerto Rico) for a period of at least 60 days prior to the date required by law for filing the return, or

    • Specific permission is requested of and granted by the IRS for other good causes.

      Note:

      While the instructions to the form provides specific language that could be used to properly grant the authority of the third party to sign the return, the language in the instructions is not the exclusive language to be entered on the form, as long as the taxpayer expresses the intent to have the third party to sign on their behalf for a valid reason under the regulation permitting them to grant that authority. Thus, any text provided by the taxpayer that includes intent is acceptable.


    Line 5, Form 8821, Disclosure of Tax Information. If no boxes are checked on Line 5, then no notices will be generated. If the box is checked to receive notices then enter the appropriate "N " code to allow the appointee to receive notices on behalf of the taxpayer.

  10. Line 6, Form 2848, Retention/revocation of prior power(s) of attorney and Form 8821, Retention/revocation of tax information authorization.

    1. If Line 6, Form 2848 or Form 8821 is not checked, input action code R in the TYP ACT field to revoke all previous existing authorizations.

    2. If Line 6, Form 2848 or Form 8821 is checked, a copy of the existing authorization or correspondence from the taxpayer stating they want to retain an authorization must be attached. Input action code "A" to add the authorization, do not use action code "R" to revoke or replace.

    3. If Line 6, Form 2848 or Form 8821 is checked, and a copy of the existing authorization or correspondence from the taxpayer is not attached, reject the authorization. Research the CAF prior to rejection to verify an authorization is recorded that may need to be retained. If there are no authorizations recorded on CAF then process the authorization without regard to the box being checked.

    Note:

    Beginning in November 2011, IRS stopped inputting taxpayer authorizations to have their refund checks sent to their recognized representative onto the CAF database.

  11. Line 7, Form 2848 and Form 8821, verify the Taxpayer's signature, signature date and title information. Enter the taxpayer's signature date of the authorization to CAF.

    1. For business accounts, a signature, date and title is required when applicable. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. For minor children signature requirements, see IRM 11.3.2.4.10, Minors.

  12. Part II of Form 2848 provides representative information. Verify the representative(s) enters his/her designation, licensing jurisdiction (state), Bar, license, certification, registration, or enrollment number (if applicable), signature and date. See IRM 21.3.7.5.1, Essential Elements of Form 2848 for designation listing. If this information is missing, follow IRM 21.3.7.13 for rejection procedures.

  13. Process each representative as a separate transaction. If information is missing for one representative, timely process all other representatives listed prior to rejecting with CAF IAT Correspondex 861C letter, Power of Attorney, Form 2848 Incomplete for Processing. Take the following actions:

    1. Make a copy of the Form 2848 . The original incoming authorization will remain at IRS and the copy of the authorization will be returned to the representative for domestic or international authorizations, when representative information is missing.

    2. Process the representative(s) that has provided the required information.

    3. Annotate "Processed" next to the representative recorded to the CAF. Apply appropriate coding and SDLN number.

    4. Reject the copy of the authorization, requesting the missing information to process the authorization.

    Note:

    When the rejected authorization comes back in, add to the CAF using a new SDLN.

  14. Form 2848, provides a PIN box near the signature line. This box is for the purpose of a signature authorization for a e-services Disclosure Authorization (DA) transmission only.

    1. If the box is completed, the first action is to determine whether authorization is already recorded on the CAF through electronic DA to avoid duplicate. Use CC CFINK to determine if the authorization has already been processed to the CAF.

    2. Once research determines the authorization has already been processed, treat as classified waste.

    Note:

    e-services Disclosure Authorization (DA) application retired September 2, 2013.

  15. If all essential elements are present, process Form 2848 and Form 8821.

  16. For processing domestic authorizations, refer to Exhibit 21.3.7-5, U.S. State Codes. For international authorizations, refer to IRM 21.3.7.7.1 , International Processing.

21.3.7.5.3.1  (06-13-2013)
Form 2848 and Form 8821- Processing Joint Filers

  1. Effective for Form 2848, revision date of October 2011 or later, joint filers must complete and submit a separate Form 2848 to have the power of attorney recorded on the Centralized Authorization File (CAF). The form allows for one signature only.

  2. Effective for Form 8821, if a husband and wife filed a joint income tax return, either spouse may designate an appointee(s) to receive or inspect the return without the consent of the other spouse. Each spouse should complete his or her own authorization to designate an appointee(s). However, if both spouse's submit one Form 8821 and both sign the authorization, process to both taxpayers. If only one spouse signs, process the Form 8821 to the signing spouse only.

    Note:

    Form 8821 does not have a revision restriction. Process Form 8821 regardless of the revision date as long as required essential elements are provided.

21.3.7.5.4  (10-01-2013)
Authority to Substitute or Delegate

  1. Only the taxpayer can grant a recognized representative the additional authority to substitute or delegate authority. The notice of substitution or delegation must be signed by the representative appointed on the power of attorney. See Pub 216, Conference and Practice Requirements; Treasury Regulations 601.505(b)(2)(i). Additionally, the notice of substitution must be submitted in accordance with the below requirements or be returned to the recognized representative.

    • The notice must be submitted with a copy of the original power of attorney reflecting the authority to delegate.

    • The new representative must meet Circular 230 criteria.

    • The notice must specify the new representative's name and mailing address.

    • If there is more than one representative, the designated representative to receive notices must be clear.

21.3.7.5.5  (10-01-2012)
Specific Processing for Ineligible Third Party Representatives Form 2848

  1. Only the Return Preparer Coordinator (RPC) or Criminal Investigations (CI) may submit designation X referrals to the CAF functions. A designation X means that the representative may not represent the taxpayer for that particular tax matter. Usually, it is a Level H or Level I preparer that did not prepare or sign the original return. Destroy as classified waste all designation X referrals received from areas other than the RPC or CI.

  2. Form 2848 should be sent to the appropriate Area RPC when the return preparer is not permitted to represent the taxpayer. If the Form 2848 is returned by the Area RPC, destroy as classified waste. Do not return to the representative nor notify the taxpayer.

  3. If a Form 2848 includes a return preparer whom is not permitted to represent a taxpayer, refer to RPC and indicate that a power of attorney is ineligible to engage in limited practice on one, some or all of the tax matters. For a current listing of appropriate Area RPC coordinators, see http://mysbse.web.irs.gov/exam/tip/rp/contacts/12293.aspx

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

21.3.7.5.6  (10-01-2013)
Unenrolled Return Preparer (Level H) and Registered Tax Return Preparer (Level I) Representative Research, Rejections and Processing

  1. The Unenrolled Return Preparer (designation Level H) and the Registered Tax Return Preparer (designation Level I) can only file a Form 2848 if the representative prepares and signs the tax return for the year(s) or periods(s) submitted and the return is under examination with the IRS.

  2. The October 2011 revision of the Form 2848 added the Level I designation for Registered Tax Return Preparer. Level H and Level I designations will co-exist until the full implementation of the Registered Tax Return Preparer is completed. The October 2011 and March 2012 revisions of the Form 2848 requests the representative to provide a PTIN. The inclusion of this information on the Form 2848 is an aid to agency personnel verifying certification status and is a required element for processing to CAF. The CAF employee will enter the PTIN onto the CAF database. The PTIN is a required field when input is in conjunction with a level (h) or (i) designation authority.

  3. All Level H and Level I authorizations must be researched to ensure eligibility. Take the following steps to ensure that the Level H and Level I representative can be added to the CAF:

    1. Verify the taxpayer/business name on the Form 2848 matches with information found using CC INOLE.

      • If the information matches on CC INOLE, proceed to the next step.

      • If the information does not match on CC INOLE, return the Form 2848 to the taxpayer using the CAF IAT tool, Correspondex Letter 4527C, stating we can not verify the taxpayer's entity information. Input a narrative on AMS documenting the rejection.

    2. Verify the tax year(s) or period(s) are under examination, i.e., FRZ -L or TC 922, is present on the tax module using CC TXMOD. Use CC IMFOL or CC BMFOL , with definer I or T, if CC TXMOD is not available.

    3. Verify that a PTIN exists on the module indicating a paid preparer using CC IMFOL or CC BMFOL, with definer R.

      • If the examination indicator and the return preparer information is present, no further validation is required.

      • If the examination indicator and/or the paid preparer's information is not found, return the Form 2848 to the taxpayer using the CAF IAT tool, Correspondex Letter 4527C. Input a history item on AMS documenting the rejection.

  4. If after research is completed and you have determined the original return was prepared by a paid preparer and the year(s) or period(s) have a FRZ -L or TC 922, process the Form 2848 to the CAF.

  5. Level H and Level I representation cannot be granted the following authority:

    1. The power to sign tax returns or extensions of period of limitations.

    2. The authority for future periods.

    3. The authority to delegate or substitute.

  6. Accept a note/letter or verbal information from the taxpayer saying that the representative prepared the original return. We can also accept a photocopy of the original return indicating that the representative prepared the original return.

    Note:

    In situations where the Form 2848 is being rejected for the above reasons and a Form 8821 is already on file, return the Form 2848 to the taxpayer using the CAF IAT toolLetter 4527C . State in the open paragraph, Your representative does not qualify for Level H representation. A Form 8821 is not required since you have previously submitted the form and it is already recorded. Input a history item to AMS.

21.3.7.6  (10-01-2013)
Form 706 U.S. Estate (and Generation-Skipping Transfer) Tax Return, Essential Elements

  1. Below are the essential elements for a Form 706 authorization to be processed.

    1. Essential element 1 - Clear identification of the decedent's name, address, taxpayer identification number.

    2. Essential element 2 - Date of Death

    3. Essential element 3 - Executor's dated signature.

    4. Essential element 4 - Third party's designation (must be designations Attorney, Certified Public Accountant (CPA) or Enrolled Agent.

    5. Essential element 5 - Third Party's dated signature

  2. If an essential element is missing or incomplete, the authorization is invalid. Refer to IRM 21.3.7.13.2 , Rejecting Missing/Incomplete Authorizations.

  3. If essential elements 1-3 are not present, the document must be returned to the Executor shown on the Form 706 .

    Note:

    For International processing, the document must be returned to the representative.

  4. For missing elements 4 or 5, you must return the form to the representative indicated on Form 706 .

  5. Do not attempt to return the Form 706 to the deceased taxpayer for the missing elements.

21.3.7.6.1  (11-17-2010)
Form 706 Screening, Coding and Editing

  1. Authority for Form 706 is limited to Levels A, B or C.

  2. Refer to IRM 21.3.7.5.2 for applicable Screening, Coding and Editing instructions.

21.3.7.6.2  (06-03-2011)
Processing of Form 706

  1. When a photocopy of Form 706 is received, process photocopied pages one and two of Form 706 to the CAF.

  2. When an original Form 706 is received, photocopy pages one and two of Form 706 for processing to CAF, prior to shipping. Forward the original Form 706 to CSPC at the following address:

    IRS - CSPC

    MS 824G

    Cincinnati, OH 45999

  3. If Form 2848 is attached to the original Form 706, detach the Form 2848 for processing to the CAF, prior to forwarding the Form 706 to the above address. Process the Form 2848 only.

  4. When an authorization on Form 2848 is received listing a combination of Form 706 issues and other tax matters, i.e., Form 1040 issues, process as a Form 2848 using one SDLN.

  5. Any authorization processed for Form 706 is maintained in the C-Site at Kansas City. Use an SDLN with a purge year of 15 years from the signed date year. Clearly indicate Form 706 on the transmittal so that the C-Site in Kansas City can store it appropriately.

  6. For more information regarding Form 706, processing see IRM 3.11.106.3, Tax Information Authorization (TIA) - Form 706 Only.

21.3.7.7  (06-13-2013)
International Processing

  1. Taxpayers Abroad, Nonresident Aliens, Processing:

    1. The IRS accepts returns signed by agents in lieu of taxpayer signature, for nonresident aliens (NRA), and U.S. citizens abroad. Although the agent may not meet criteria on Form 2848, Part II, "A" through "R" , the Form 2848, for signature purposes only are not recorded on the CAF database and will remain attached to the tax returns.

    2. The Form 2848 will not have a Designation Level completed on Part II, Declaration of Representative and will specifically indicate that the form should remain attached to the Form 1040NR return.

    3. If the Form 2848 was electronically filed, treat the authorization as classified waste. Do not send any taxpayer information to the agent listed on these Form 2848.

    4. International Tax returns, Form 1040NR are submitted to the Austin Submission Processing Campus (ASPC). The Form 1040NR is submitted attached to the Form 2848, for verification that the taxpayer has granted the representative the authority to sign the tax return on the taxpayers behalf. The Form 2848 and Form 8821is detached after verification of the signature along with the written statement POA. The ASPC is instructed to forward these detached authorizations to the International CAF team for processing at the following address:
      Internal Revenue Service
      International CAF MS 3–E08.123
      2970 Market St.
      Philadelphia, PA 19104
      Fax number 855–772–3156
      Fax number 267–941–1017 outside United States

  2. Pursuant to Treasury Regulation Section 1.6012 - 1(a)(5) , an individual taxpayer required to file an income tax return other than a Form 1040NRmust indicate on Form 2848, Line 5, that the representative(s) is authorized to sign the return and must give the specific reason for the agent’s signature. The acceptable reasons that should be placed on Line 5, Acts Authorized are:

    • Disease or injury,

    • Continuous absence from the U.S. (including Puerto Rico) for a period of at least 60 days prior to the date required by law for filing the return, or

    • Specific permission is requested of and granted by the IRS for other good causes.

    Note:

    While the instructions to the form provides specific language that could be used to properly grant the authority of the third party to sign the return, the language in the instructions is not the exclusive language to be entered on the form, as long as the taxpayer expresses the intent to have the third party to sign on their behalf for a valid reason under the regulation permitting them to grant that authority. Thus any text provided by the taxpayer that includes intent is acceptable.

  3. Pursuant to Treasury Regulation Section 1.6012 - 2(g)(3), the authorized agent of a foreign corporation may sign a return of income on behalf of the foreign corporation. Where a power of attorney is required before the agent may sign the return, i.e., Form 1120F, U.S. Income Tax Return of a Foreign Corporation, the taxpayer must indicate on Form 2848, Line 5, that the representative(s) is authorized to sign the return. The taxpayer is not required to provide a specific reason for the agent’s signature.

  4. International third party authorizations are received and processed with taxpayer signature dates in various formats. Here are the different formats:

    • DD-MM-YYYY

    • MM-DD-YYYY

    • YYYY-DD-MM

    • DD-YYYY-MM

  5. For international authorizations, refer to the following for country codes:

    • Exhibit 21.3.7-3, Foreign Country Codes (A to L)

    • Exhibit 21.3.7-4, Foreign Country Codes (M to Z)

    • Exhibit 21.3.7-6, Canadian Province Codes

    • Exhibit 21.3.7-7, Mexican Territory Codes

21.3.7.7.1  (06-03-2011)
Determining International Form 2848 and Form 8821 Inventories

  1. Memphis and Ogden CAF Functions will ship any International receipts to Philadelphia Campus for processing. Use the following identifiers to determine an International Form 2848 or Form 8821:

    • APO or FPO address,

    • Form 2848 or Form 8821, either the taxpayer or representative have a foreign address, including American Samoa, Guam, the Virgin Islands or Puerto Rico.,

    • Taxpayers filing Form 2555, Form 2555–EZ , or Form 4563,

    • Line 3, Tax matters, on Form 2848 or Form 8821 indicates a Form 1040NR only,

    • Line 3, Tax matters, on Form 2848 or Form 8821 indicates a Form 1040NR or Form 1040A with a W-7 issue,

    • In lieu of a SSN, the Individual Taxpayer Identification Number (ITIN) assigned by IRS is used on Line 1, Taxpayer Information, on Form 2848 or Form 8821. An ITIN number begins with a "9" , i.e., 900–00–0000, and the middle ITIN digits range from 70 to 92 and 94–99,

    • All Form 2848 (SP).

21.3.7.7.2  (11-17-2010)
International Processing/Rejecting Authorizations

  1. The taxpayer's representative will be the first option when additional contact is needed as a result of missing or incomplete information, as most International taxpayers reside abroad and their representatives practice in the United States. See IRM 21.3.7.13.2 , Rejecting Missing/Incomplete Authorizations for guidelines.

21.3.7.7.2.1  (05-18-2012)
International Processing Form 2848 Processing Addendum

  1. Some International tax laws prohibit taxpayer’s from using a joint-filing status FS 2 when submitting an international tax return per Publication 519 United States Tax Guide for Aliens. The taxpayer(s) are instructed by their representative to use FS 3 to ensure the necessary guidelines are being met. The authorization associated with this type of filer will have the following characteristics:

    • Primary name only on Line 1.

    • Primary SSN only on Line 1.

    • Primary taxpayer’s signature & date.

    • Filing status FS 3 on CC IMFOLI for requested tax years.

    Note:

    Normal guidelines would require the International CAF Function to correspond with the secondary taxpayer to obtain the missing name & SSN. However, per Publication 519, U.S. Tax Guide for Aliens, the secondary taxpayer will submit their own authorization to be processed to the CAF database and therefore correspondence with the secondary taxpayer is not necessary.

21.3.7.7.3  (06-03-2011)
International Processing Timeframes

  1. Receipts received in the CAF Functions are processed first in first out (FIFO), regardless of the method used to submit the authorization.

  2. All receipts will be processed within 10 calendar days, including bulk receipts.

  3. All receipts must be date (automated or manually) stamped.

    Exception:

    International bulk receipts, which are received in the hundreds to thousands, cannot be automated or manually stamped due to the high volume of receipts. For information on International Bulk receipts, refer to IRM 21.3.7.7.4, Processing Bulk Shipments.

  4. When fax receipts are dated and time stamped via the fax machine, no further action is required as evidence of receipt.

  5. Receipts received before 2:00 p.m. local time are considered received on the current day. Receipts received after 2:00 p.m. local time are considered received next business day.

  6. When unusual circumstances arise, or results from a systemic issue, and you cannot meet the time frame established above, contact the Headquarters CAF Analyst for potential re-routing of work.

21.3.7.7.4  (11-17-2010)
Processing Bulk Shipments

  1. The International CAF Function will receive Form 2848, Written Statement POA and Form 8821, in bulk shipments of at least 50 from one mailing source. This source can be a single representative, multiple representatives or an accounting/law firm. These authorizations have specific handling and processing procedures. These procedures were implemented to provide our customers with quality service and timely processing. They include, but are not limited to the following actions:

    • Initial examination of these cases is performed by the lead/manager to ensure all essential elements are in place to begin processing.

    • Special processing procedures/instructions are forwarded to team examiners and quality reviewers (PAS). These procedures instructions are mutually agreed upon by the International CAF Function and PAS Quality Function before processing begins. (i.e.,. the addition and/or deletion of specific duties for a specific representative. The utilization of a particular signature date during processing).

    • Batched in packs of 50 cases each.

    • Stamp the first case in each pack. The stamp date is the signature date agreed upon by the International CAF Function and PAS Quality Function.

    • Besides SDLN (Source Document Locator Number), limited to very little or no coding. If you choose to code, only code the first document.

21.3.7.7.5  (02-09-2012)
International Processing Written Statement POA

  1. Most large shipments of Form 2848 and Form 8821 received in Philadelphia have a specialized document (Written statement POA) attached to the authorization. This document outlines specific acts granted to the representative(s), by the taxpayer, however, the Form 2848 must have the Acts Authorized listed on Line 5. This document (Written statement POA) is mainly used for the verification of the taxpayer(s) and representative(s) signature.

  2. If a Written Statement POA is attached to a completed Form 2848, record the authorization to CAF using the representatives signed date on Form 2848.

21.3.7.8  (11-17-2010)
Additional CAF Processing

  1. This section provides information for miscellaneous CAF processing.

21.3.7.8.1  (02-09-2012)
Form 944 Authorizations

  1. Form 944, Employer's Annual Federal Tax Return, MFT 14, is an annual return. Some business filers qualify for this annual form in lieu of filing Form 941, Employer's Quarterly Federal Tax Return. The employer must be notified by the IRS of their eligibility to file 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 or Form 944 that was not chosen.

    Note:

    Current tax period is defined as the current reporting period, extending to the due date of the tax return.

    Figure 21.3.7-1

    If And Then
    Processing to tax periods 2005 and prior Taxpayer requesting Form 941 and/or Form 944 Process to Form 941.
    Processing to tax periods 2006 and subsequent Taxpayer requesting Form 941 and/or Form 944 Process to both Form 941 and Form 944.

21.3.7.8.2  (05-18-2012)
Civil Penalty Authorizations

  1. There are two types of Civil Penalties which may be processed to the CAF database:

    1. MFT 55 applies to civil penalties assessed against individuals (SSNs).

    2. MFT 13 applies to civil penalties assessed against businesses (EINs).

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

    • Form 8278

    • Computation and Assessment of Miscellaneous Penalties

    • Form 2749

    • Request for Trust Fund Recovery Penalty (TFRP) Assessment(s) IRC 6672

    • CVLPN

    • Penalty, research for civil penalty


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