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

Manual Transmittal

September 14, 2018

Purpose

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

Material Changes

(1) IRM 21.3.7.1.7(2) Third-Party Authentication IRM reference updated.

(2) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.4.1(1) Added the word "must " to updating representative/appointee information. and removed second bullet.

(3) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.5.1(4) (a) Moved the Note from #7 to make it clear the document with the most recent taxpayer signature date is the valid authorization.

(4) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.5.1(4) (a) (1) Moved the note for the exception to joint filer general rule.

(5) IRM 21.3.7.5.1(4)(a)(2) Added the title must match the business entity type in question.

(6) IRM 21.3.7.5.1(4)(a)(7) Added to reject for additional documentation if the second name line doesn’t match the authorization

(7) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.5.1(4) (b) Added an example of an Enrolled Agent number, a PTIN number and see also 21.3.7.5.6 for level "H" limited representation.

(8) IRM 21.3.7.5.1(4)(b) Made last two sentences unrestricted.

(9) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.5.1(4) (d) Exception added for first time filers accepting TIN and name control only.

(10) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.5.1(4) (e) Clarification added to the acceptance of additional appointees when requested with Form 8821.

(11) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.5.2(4) Clarified that the SDLN is the only mandatory coding that is required and a note was added stating all other coding in this section is not mandatory.

(12) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.5.2(6) Replaced the words "entity modules" with CC INOLE when researching the FYM.

(13) IPU 18U1014 issued 06-29-2018 IRM 21.3.7.5.2(6) Added Command Codes IMFOL and BMFOL to researching FYM and a" If-And-Then chart" to aid in minimizing unpostables.

(14) IRM 21.3.7.5.2(6) Clarified FYM If-And-Then chart.

(15) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.5.2(19) Removed an outdated reference to the third-party receipt of refund on taxpayer’s behalf (formerly line 6 of Form 2848).

(16) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.5.3(5) Clarified Line 2 information regarding Forms 2848 and 8821.

(17) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.5.3(6) Clarify IRM intent in handling the rejection/processing to the Individual/Business based on the TIN provided on the authorization and replaced the words "entity modules" with CC INOLE when researching the FYM in the second note.

(18) IPU 18U1014 issued 06-29-2018 IRM 21.3.7.5.3(6) Added see also to second note referring back to" If-And-Then Chart for FYM processing."

(19) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.5.3(10) (c) Removed the note that contained obsolete information.

(20) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.5.5 Added Suspicious Forms Log and the "Potential Fraud" Authorization Referral Process and removed the prior information in this section about ineligible third-party authorizations that is now obsolete.

(21) IPU 18U1014 issued 06-29-2018 IRM 21.3.7.5.5.1(3) Added, once confirmed as fraud, CAF HQ notifies the W&I Incident Response Team.

(22) IPU 18U1014 issued 06-29-2018 IRM 21.3.7.5.5.3(1) (2) Added additional information to identifying fraud. In addition, a note was added to include CAF HQ notifies the W&I Incident Response Team once fraud has been confirmed.

(23) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.6.2 Deleted paragraph number 3.

(24) IRM 21.3.7.7.1(1) Added a reminder about mis-routed International Bulk Inventory.

(25) IRM 21.3.7.8.3(2) Added tax periods through 201801-12 for MFTs 35 and 65.

(26) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.8.5(2) Added "issued by TAS" to the note.

(27) IPU 18U1014 issued 06-29-2018 IRM 21.3.7.8.8 (c) Added note to see also referring to If-And-Then Chart for FYM processing.

(28) IPU 18U0920 issued 06-11-2018 IRM 21.3.7.10(1) (b) and (4) Note added to issue a new SDLN on all revocation/withdraw deletions processed to the CAF.

(29) IPU 18U0937 issued 06-13-2018 IRM 21.3.7.10 Removed the change made to issue a new SDLN on revocations. This direction was previously added in error.

(30) IPU 18U0920 issued 06-11-2018 Exhibit 21.3.7-2 Added Form 8288 to list of forms that can be processed by CAF.

Effect on Other Documents

IRM 21.3.7, dated September 13,2017 (effective October 1, 2017 is superseded. This IRM also incorporates the following IRM Procedural updates (IPU) 18U0920 (06-11-2018), 18U0937 (06-13-2018) and 18U1014 (06-29-2018).

Audience

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

Effective Date

(10-01-2018)

Karen A. Michaels
Director, Accounts Management
Wage and Investment Division

Program Scope and Objectives

  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 paper submission via fax or mail or taxpayer contact directly with the Internal Revenue Service (IRS) for oral authorizations.

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

  3. Different types of authorization authority are:

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

    • Appointee - An individual person or business entity the taxpayer appoints to receive and inspect confidential tax return information verbally or in writing for the type of tax and years or periods specified by the taxpayer.

    • Third-Party 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.

  4. Taxpayers have the right to retain an authorized representative of their choice to represent them in dealings with the Internal Revenue Service (IRS).

Background

  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 representative’s 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 e.g., (MFT)(s) and tax period(s);

    • Employee Plan number, if applicable;

    • Source Document Locator Number (SDLN);

    • Authorization type, e.g., Form 2848, Form 8821, Form 706 etc.;

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

    • Notice Indicator;

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

  3. 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

    Note:

    For Specific Use Exception, See IRM 21.3.7.8.12, Specific Use Authorizations

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Roles and Responsibilities

  1. All employees will complete duties in accordance with Policy Statement 1-236, Fairness and Integrity in Enforcement Selection. See IRM 1.2.10.3.7.

  2. All duties will be done in accordance with the Taxpayer Bill of Rights (TBOR) as listed in IRC 7803(a)(3). Additional information may be found on the irs.gov website @ www.irs.gov/taxpayer-bill-of-rights.

  3. The Director of Accounts Management (AM) is responsible for the development and delivery of policy and guidance that impacts employees processing third-party authorizations to the CAF.

Audience-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. Any International authorizations identified by IRS sites other than Philadelphia, must ensure the authorizations are faxed to (855) 772-3156 as soon as possible to Philadelphia or at least within 24 hours of receipt.

    Exception:

    International bulk receipts will be mailed as soon as possible or within 24 hours of receipt to Philadelphia CAF.

  3. The 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 855-593-4051 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. There are times when the public does not send their authorizations directly to the CAF for processing. Any office receiving an authorization, must fax the authorization to CAF for input as soon as possible or within 24 hours of receipt.

  6. CAF Unit addresses and fax numbers are:

    1. Memphis Address:
      Internal Revenue Service
      5333 Getwell Rd. Stop 8423
      Memphis, TN 38118
      Fax number 855–214–7519

    2. Ogden Address:
      Internal Revenue Service
      1973 N Rulon White Blvd. MS 6737
      Ogden, UT 84201
      Fax number 855–214–7522

    3. Philadelphia Address:
      Internal Revenue Service
      International CAF MS 4.H14.123
      2970 Market St.
      Philadelphia, PA 19104
      Fax number 855–772–3156
      Fax number 304-707-9785 outside United States

  7. 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 within 24 hours unless considered bulk inventory, which will be mailed.

Program Management-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 5 business 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 IRS received date that is stamped on the authorization. See IRM 21.5.1.4.2.4, Received Date Determination.

  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.

Program Controls-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 it 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, e.g., 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.

Acronyms and Terms

  1. For a list of acronyms see: http://mysbse.web.irs.gov/sbseorg/glossary/default.aspx

Related Resources-Related IRMs 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. 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

  2. For practitioner authentication over the phone, refer to: IRM 21.1.3.3, Third-Party (POA/TIA/F706) Authentication.

  3. 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 to Designees and Practitioners

    • IRM 21.1.3, Operational Guidelines Overview

  4. 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

Taxpayer Research Guidelines

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

  2. If the Taxpayer Identification Number (TIN) is not on the authorization, reject the authorization. See IRM 21.3.7.5.1(4)(d) for exceptions.

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

  4. If the authorization has a Taxpayer Identification Number (Social Security Number (SSN), Employer Identification Number (EIN), or Individual Taxpayer Identification Number (ITIN), 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 Annual Return/Report of Employee Benefit Plan. 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.

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. CCRPINK 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, (Form 2848 ,Form 8821 , or Form 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 CCRPINK to locate correct CAF number for the representative or appointee and annotate correct CAF number on the authorization.

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 Taxpayer Identification Number (TIN) or Preparer Tax Identification Number (PTIN). A CAF number is systemically generated.

  2. A third-party can request multiple CAF numbers 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(s).

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

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

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

  6. A Form 2848 representative can only be an individual.

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

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

    1. Access CCFRM3P to initiate the ADD3P screen,

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

      Caution:

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

    3. A message will be returned Representative Added NNNN-NNNNNR. Notate the new assigned CAF number on the authorization in the CAF No. area on Line 2 of the representative(s) information.

  3. The following rules apply to assigning CAF numbers:

    • If the third-party information is misspelled or illegible, do not assign a 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 numbers are systematically generated using a two-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.

Providing Lost/Forgotten CAF Numbers

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

    • Confirm there is an existing CAF number(s) for the name and address provided.

    • Use CAF IAT letter tool to send Letter 1727C, Power of Attorney Representative Number, to the third-party requesting the lost/forgotten CAF number.

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, e.g., CP 547, that are attached to the representative’s merge request

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

    • A CCCFINK 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 to complete the merge. If they do not match, use CCKAFRMR 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 to complete the merge. See CCUPNCF 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.

CAF Updates - Taxpayer Record Updates

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

    1. Input CCCFINK with TIN.

    2. Overlay CFINK with CC KAFRMT.

    3. Response screen is CCUPTCF. Verify taxpayer name and name control information and overlay fields with correct information.

    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’s 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.

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(s), telephone or fax number(s) must 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.

    • 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 CCKAFRMR and transmit, your response screen is CCUPRCF.

    4. CCUPRCF, 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.

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, must only be used by 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.

Essential Elements for Form 2848 and Form 8821

  1. There are five essential elements needed to process the Form 2848 and four essential elements needed to process 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 the 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.

      Exception:

      The signature date can be typed, stamped or hand written.

      Note:

      The document with the 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, e.g., a Form 2848 has already been processed to the CAF database with a taxpayer signature date of March 31, 2018; however, another Form 2848 is received with a taxpayer signature date of December 31, 2017. The legal document would be the form with the taxpayer signature date of March 31, 2018 since it is the most recent signature date for the taxpayer.

      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.

        Note:

        For an exception to this general rule, see IRM 21.3.7.5.3.1(2).

      2. For BMF accounts, a signature, date and title is required. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The title must match the entity in question. It is acceptable to edit Sole Proprietor as the owner for the authorization when EIN is valid for Sole Proprietor and the title is missing.

      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 residing abroad. If the taxpayer's dated signature is more current than the representative’s signature, the 45 (or 60) day rule does not apply. If 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 is being used to obtain tax information for a purpose other than addressing a matter with the IRS (e.g., for income verification required by a lender). This 120 day requirement does not apply to a Form 8821 submitted to authorize disclosure for assisting the taxpayer with a tax matter with the IRS.

        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 an individual's 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. If the name does not match CC ENMOD or CC INOLES, reject the authorization requesting a Durable Power of Attorney, court appointment papers, guardianship papers or Form 56 .

    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 his/her bar, license, certification, registration, or enrollment number, if applicable. The representative's signature and date are also required. An electronically signed, printed or stamped signature is not acceptable. For multiple representatives listed on the same form, only one signature date is required; however, all representatives must sign the Form 2848. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The representative is required and must list certain information in the Licensing jurisdiction (state) or other licensing authority and Bar, license, certification, registration or enrollment number columns depending on their designation level. See the required entries for each Designation Level (A-R) listed in the chart below.

      • A - Attorney - enter two-letter state abbreviation, e.g., "NY" for New York, in which the attorney is admitted to practice in the Licensing jurisdiction column and list the associated bar or license number on Form 2848, if any.

        Note:

        Do not reject solely for the missing bar or license number if the state abbreviation or Licensing jurisdiction (state) or other licensing authority information is provided.

        Note:

        The definition of an "attorney" is an individual who is a member in good standing of the bar of the highest court of any state, territory, or possession of the United States, including a Commonwealth, or the District of Columbia.

        Caution:

        Tribal Court advocates and Social Security disability advocates are not “attorneys.”

      • B - Certified Public Accountant (CPA or LPA) - enter two-letter state abbreviation, e.g., "NY" for New York, in which they are licensed to practice in the Licensing jurisdiction column and their associated certification or license number in the Bar, license etc. column on Form 2848, if any.

        Note:

        Do not reject solely for the missing bar or license number if the state abbreviation or Licensing jurisdiction (state) or other licensing authority information is provided.

      • C - Enrolled Agent - enter Internal Revenue Service (IRS) as the licensing jurisdiction and the enrollment card number in the Bar, license etc. column.

        Note:

        Do not reject solely for the licensing jurisdiction information (IRS), if the enrollment card number is provided. The enrollment card number is an eight digit number beginning with 00, for example; 00011122-EA.

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

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

      • F - Family member - enter relationship to taxpayer, e.g., 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. A PTIN is a nine-digit number always beginning with the alpha P(for example, P01234567). See IRM 21.3.7.5.6 for limited representation.

      • K - Student (law, business or accounting) or law graduate. 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 IRS.

        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 - Acts authorized on Form 2848 or tax information on Form 8821, e.g., 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. Refer to IRM 21.3.7.5.2(6).

      Reminder:

      If the taxpayer is not limiting their appointee's authority to inspect and/or receive all confidential tax information described in column (a), (b), and (c), the taxpayer may enter not applicable or N/A in column (d) on Form 8821. This is acceptable.

      Note:

      Use of the four-digit year (e.g., 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 year ending month as established for the entity.

    4. Essential element 4 - Clear identification of the taxpayer, e.g., name, address, taxpayer identification number is required. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Through IDRS research, the taxpayer TIN, name and address can be validated. If the taxpayer's TIN is not provided on the authorization, reject the authorization to the taxpayer for the missing information.

      Exception:

      International authorizations that indicate W-7 on Line 3, research IDRS to locate the ITIN. If an ITIN is found, process the authorization. If an ITIN is not found, reject the authorization to the third-party for the missing information.

      Exception:

      Authorizations where only the taxpayer’s TIN and Name Control are present on CC INOLE because the taxpayer has not yet been established on master file as filing a return, process the authorization after validating the TIN and name control match what is on file.

    5. Essential element 5 - Clear identification of the third-party, e.g., 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. However, when a Form 8821 is submitted with a list of additional appointees attached and line 2 is annotated "see attached list" then each appointee on the attached listing shall be entered to the CAF database as requested. The appointees on the attached listing are authorized only for the tax periods and forms listed on Line 3 of the submitted authorization. If line 2 is annotated and a listing is not attached, only load the business and do not reject for the additional list. If a list of additional appointees is attached and line 2 has not been annotated, process the business appointee only and destroy the additional appointee list as classified waste.

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 mandatory and is 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.

    Note:

    The rest of the coding outlined below is not mandated, however, it has been found beneficial to the process and may aid both novice and experienced tax examiners in the processing of authorizations to the CAF database.

  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 CC INOLE. Some accounts especially business requests (e.g., 1120, 1065, 1041 etc. have a Current FYM and a Prior FYM depending on the years requested addition to CC INOLE research, you must research CC IMFOLI/BMFOLI as applicable to validate the correct FYM to avoid an unpostable condition. If they do not match, you must annotate the correct FYM on the authorization and process the authorization with the correct FYM.

    Note:

    To assist in the processing of MFTs requiring an FYM, see" If-And-Then Chart " below:

    IF AND THEN
    After researching INOLES for the current FYM There is no FYM present on CC INOLES (e.g., FYM is 00) and no filing requirements listed on CC IMFOLI/BMFOLI. Use FYM 12 for processing
    The requested years are given (e.g., 2000-2017) Research INOLES to see if there is a Current and Prior FYM. Research IMFOLI/BMFOLI After research, there are Current and Prior FYM’s on IMFOLI/BMFOLI. Annotate the FYM for each year on the authorization then process accordingly. (this also applies to MFT 60) If the request had future years you would process under the Current FYM
    After thorough research on IMFOLI/BMFOLI There are no additional FYM’s listed on the IMFOLI/BMFOLI Process the current FYM for the requested years including future periods
    Processing a MFT with a Plan number There are multiple plan numbers listed on INOLES and the Plan Number is not on Form Reject Form 2848 and/or Form 8821 for the plan number if multiple plan numbers are listed using the 861C letter.
    Processing a MFT with a Plan number The request is for one plan number and is missing from the authorization Research IMFOLI/BMFOLI or TXMOD and process the end month for the plan listed on INOLES.
  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 cannot 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, e.g., 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, e.g., 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 cannot 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 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) 317–6897 for a determination on whether the use of the CPA Designation Level is appropriate.

  17. Form 2848, Line 5a, Additional acts authorized and Line 5b, Specific acts not authorized may limit, or give additional, authority to the taxpayer’s representative(s).

    1. If Form 2848, Line 5a, grants any authorization other than disclosure to third-party, substitute/add representative(s) or sign a return, or limits any authorization as notated on line 5b, Specific acts not authorized on the Form 2848, code an "M" (Modified) in the left margin next to box 5a. Otherwise, code a "U" (unmodified) in left margin next to box 5a.

      Caution:

      If the taxpayer states my representative cannot sign any agreements or consents on 5b, this would be a modification, since the form instructions state to list any specific deletion to the acts otherwise authorized in the power of attorney. Listing the acceptable reason, the representative has for authority to sign return is listed on 5a as instructed and would not be considered a modification.

    2. 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"
      - For disclosure to a third-party, code a "Y" (Disclosure to third parties) in the left margin beside the representative(s) name(s).
      - For adding or substituting a representative, code a "D" (Delegate) in the left margin beside the representative(s) name(s).
      - For signature authority, code with an "S" in the left margin beside the representative(s) name(s).

      Reminder:

      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, U.S. Nonresident Alien Tax Return must indicate on Form 2848, Line 5a, 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:

      For an Unenrolled Return Preparer (Level H), or Student (Level K), do not code a "Y" , "D" or "S" .

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

    4. 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.

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.

  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 own 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 5027, 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, Taxpayer information, verify and enter taxpayer or business entity information. When the name on the request does not match the name shown on CCINOLES, and proper research determines the TIN is the correct taxpayer, use the name as shown on CCINOLES 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. 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. If more than one sole proprietor EIN is found during research, reject the form to the taxpayer to determine the correct EIN. In addition, reject Form 2848 and/or Form 8821 that list more than one EIN on line 1.

    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, e.g., Form 990, Form 1065 or Form 1120. You may see filing requirements that include, but not limited to, Form 720, Form 940, Form 941, Form 943, Form 945 or Form 2290 associated with a sole proprietor EIN. CC INOLES research of the SSN should cross reference to the EIN.

  5. Line 2, Representative(s)/Appointee(s), verify and enter representative/appointee information provided on Line 2. This includes the name, address, CAF number, PTIN number, telephone and fax number when provided on the authorization.

    1. If the representative/appointee has not provided their CAF number on the authorization, complete research, using CC RPINK prior to assigning a CAF number.

    2. Line 2 of Form 2848 and Form 8821 includes a check box for the representative/appointee to receive notices and communications. If the box is checked to receive notices then enter the appropriate "N" code to allow the representative/appointee to receive copies of taxpayer notices.

      Caution:

      No more than two representatives/appointees can be authorized to receive notices.

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

    Note:

    It is acceptable to process an authorization that lists Form 1040 and Form 940 to the TIN provided. However, when only a SSN is provided, process to Form 1040 and not Form 940 (nor any other business forms) to avoid rejecting these types when it can be determined it was a typo or carelessness of the submitter.

    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 21.3.7.8.6, MFT 31 Authorizations

    .

    Note:

    For Fiscal Year Month (FYM), verify that the FYM on the authorization matches the FYM on CC INOLE. 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. See IRM 21.3.7.5.2(6)

  7. Line 4, Specific use, is not loaded to the CAF. Treat as classified waste.

  8. Line 5a, Additional acts authorized, Form 2848, verify Additional acts authorized information which allows the taxpayer to grant additional authority. Line 5b, Specific acts not authorized, may limit authority to the representative(s). Pursuant to Treasury Regulation Section 1.6013-1(a)(5), an individual taxpayer required to file an income tax return other than a Form 1040NRmust indicate on Form 2848, Line 5a, 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 5a, Additional 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, if 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.

  9. Line 5, Disclosure of tax information, Form 8821, Tax Information Authorization, is not checked then notices will not generate. 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.

  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. The title shall be the acceptable title per business entity type. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    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 CorrespondenceLetter 861C, 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 on revisions prior to July 2014. This box was for a signature authorization on all previously submitted e-services Disclosure Authorization (DA) transmissions only.

  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.

Form 2848 and Form 8821- Processing Joint Filers
  1. If a joint return has been filed, one or both spouses may choose to be represented by the same or different POAs. Effective for Form 2848, revision date of October 2011 or later, if both spouses choose to be represented by the same individual(s) or different individual(s), both the husband and wife are required to file and sign separate Forms 2848. If only one spouse is to be represented, only the represented spouse is required to sign the Form 2848. Regardless, any authorized representative for either spouse is allowed access to tax information related to the joint tax return.

  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 spouses 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 if required essential elements are provided.

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 26 CFR §601.505(b)(2), Conference and Practice Requirements; Statement of Procedural Rules. 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.

Suspicious Forms Log and the “Potential Fraud” Authorization Referral Process

  1. The Centralized Authorization File (CAF) function has discovered that certain individuals have tried to gain access to taxpayer account information by filing fraudulent authorizations such as Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization. For this reason, Accounts Management has ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ to establish a process for CAF employees to refer authorizations with suspicious characteristics for further review.

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

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Once a CAF employee identifies a "suspicious" authorization ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. Do Not process the authorization(s).

    2. Provide the document(s) to your manager and/or lead as designated by your site for review of the potentially "suspicious" authorization(s).

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. Each CAF site will add the following information to their respective CAF Suspicious Log:

    • Date of Discovery,

    • CAF Number,

    • Form Number (Form 2848 or Form 8821),

    • Representative/Appointee Name,

    • Taxpayer TIN and Name, and

    • Any pertinent comments, if applicable.

  4. All identified "suspicious" authorizations are reviewed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ "

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. Each CAF site must review the "returned" referral log once it has been marked "REVIEWED" .

    1. Any case marked "ok to process" will be processed to the CAF Database within 3 business days.

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Criminal Investigation (CI) Involvement in the CAF/POA Suspicious Forms Log and the “Potential Fraud” Authorization Referral Process
  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

  3. Once confirmed fraudulent, the CAF HQ Analyst notifies the W&I Incident Response Team.

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

CAF Practice Codes and CAF/POA Suspicious Forms Log and the “Potential Fraud” Authorization Referral Process
  1. Recently discovered incidences of fraud, perpetrated by identity thieves using existing CAF numbers, made it necessary for CAF processing to add two new values to the Practice Code fields of the CAF third-party record screen.≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ The addition of the Practice Codes to the CC CFINK record will ensure IRS staff who use the CAF to authenticate third parties will have accurate information for authenticating third parties and strengthen the security of taxpayer information.

  2. The two new CAF Practice Code fields are:

    • Pending - "P" will suspend activity on a CAF number≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Cancelled -" C" a CAF number that has been confirmed as compromised ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. CAF employees designated to work the CAF Suspicious Log will use the CAF IAT tool to input these two Practice Codes.

  4. IRS personnel can identify these two practice code fields when researching a CAF number using the command code CFINK. The CAF status code field will read as:

    • "P" CAF STATUS: PNDING REVIEW

    • "C" CAF STATUS: CONFIRM FRAUD

    for more information see IRM 21.1.3.3(4) and (5) of Third-Party Authentication.

How To Report a Compromised or Potentially Compromised CAF Number
  1. IRS personnel may be made aware of potentially fraudulent CAF activity through taxpayer contact or become aware during their normal duties and/or case handling. They could also be contacted by someone using a CAF number that is marked Pending Review.

  2. In addition to reporting suspicious or potentially fraudulent use of authorizations, all IRS personnel should report contacts involving the use of compromised or potential compromised CAF numbers to the CAF function for action or further review.

  3. Send referrals to the CAF function via e-mail to *W&I SUSP Auth.

  4. The following information is needed in the referral, if known:

    • Name and contact number of person who reported suspicious activity

    • Name and contact number of IRS employee referring suspicious activity (if different from above)

    • Name and contact information for the third-party

    • CAF Number

    • Third-Party Name (CAF Rep)

    • Third-Party TIN

    • Date and Time suspicious activity was reported to IRS

    Note:

    All reports of fraudulent use of third-party authorizations will be investigated, if fraud is confirmed the CAF HQ Analyst will notify the W&I Incident Response Team.

Unenrolled Return Preparer (Level H) Representative Research, Rejections and Processing

  1. The Unenrolled Return Preparer (designation Level H) can only file a Form 2848 if the representative prepared and signed 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. On Feb. 11, 2014, the U.S. Court of Appeals for the District of Columbia Circuit upheld the decision of the lower court in the case of Loving vs. IRS, finding insufficient statutory support for the IRS’s regulation of federal tax return preparers. This court decision removes the Level I, Registered Tax Return Preparer designation. If the CAF function receives a Level I designation for processing, it shall be treated as a Level H, Unenrolled Return Preparer.

  3. Beginning January 1, 2016, Unenrolled Return Preparers, Level H, must participate in the Annual Filing Season Program (AFSP). For returns prepared after December 31, 2015, the only Unenrolled Return Preparers who may represent taxpayers are those who participate in the IRS AFSP.

    1. The Annual Filing Season Program is a voluntary program that allows limited practice rights for return preparers.

    2. The IRS issues an Annual Filing Season Program Record of Completion to return preparers who obtain a certain number of continuing education hours in preparation for a specific tax year.

    3. Annual filing season program participants do not have unlimited practice rights. Their rights are limited to representation of clients whose returns they prepared and signed, but only before revenue agents, customer service representatives, and similar IRS employees, including the Taxpayer Advocate Service. They cannot represent clients whose returns they did not prepare and sign, nor can they represent clients before the collection or appeals functions.

    4. The AFSP record of completion is not required to be attached to the Form 2848 submission for processing to the CAF database.

  4. The Form 2848 requests the representative to provide a valid 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 designation authority.

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

    Note:

    You must research the primary account for the information below when a return has not posted to the TIN and the tax period(s) listed on the Form 2848 with a TC 594 and a cross referenced TIN present.

    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, Correspondence Letter 4527C, stating we cannot verify the taxpayer's entity information. In addition, input a narrative on AMS documenting the rejection.

    2. Verify the tax year(s) or period(s) are under examination, e.g., FRZ -L, TC 922 or TC 925, 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 RTVUE, CC BRTVU or CC TRDBV.

    4. Verify the PTIN found during research in paragraph (c) above with the PTIN provided on the Form 2848. Ensure the PTIN number belongs to the PTIN holder using CC RPVUE located in paragraph (c) above.

  6. After research is complete, follow below to determine if the Form 2848 should/should not be processed to the CAF database.

    • If the examination indicator and the return preparer PTIN information is valid, process the Form 2848 to the CAF database.

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

  7. Level H 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.

  8. 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. In addition, CAF can accept documentation that proves a return is under examination either by note/letter stating the taxpayer requested an examination reconsideration or a copy of a proposed letter of examination from the IRS.

    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."

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.

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, Form 2848 and Form 8821, Screening, Coding and Editing for applicable instructions.

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

  4. Any authorization processed for Form 706 is maintained in the C-Site at Kansas City. Use a 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.

  5. Additional information on Form 706, processing is in IRM 3.11.106.3, Tax Information Authorization (TIA) - Form 706 Only.

International Processing

  1. Taxpayers Abroad, Nonresident Aliens, Processing:

    1. The IRS will accept a return prepared and signed by an agent in the United States on behalf of a nonresident alien (NRA) or United States citizen if such individual was not in the United States at any time during the 60 days before the return was due. 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 taxpayer’s 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 4.H14.123
      2970 Market St.
      Philadelphia, PA 19104
      Fax number 855–772–3156
      Fax number 304-707-8795 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 5a, Additional 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 provide 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, if 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 responsible representative or agent of a foreign corporation may sign a return of income on behalf of the foreign corporation. When a power of attorney is required before the responsible representative or agent may sign the return, e.g., Form 1120F, U.S. Income Tax Return of a Foreign Corporation, the taxpayer must indicate on Form 2848, Line 5a, 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

Determining International Form 2848 and Form 8821 Inventories

  1. Memphis and Ogden CAF Functions will fax all International receipts, other than bulk inventory to Philadelphia Campus for processing within 24 hours. International bulk inventory, if received, will be mailed to Philadelphia Campus within 24 hours of receipt. 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" , e.g., 900–00–0000, and the middle ITIN digits range from 50-65, 70–88, 90–92 and 94–99, See IRM 3.21.263.2(5), IRS Individual Taxpayer Identification Number (ITIN) Real-Time System (RTS);

    • All Form 2848 (SP).

    Reminder:

    If International Bulk Inventory is mis-routed to either Ogden or Memphis, Form 2848, Form 8821 and the Written Statement should all be kept together. Do not detach this type of inventory.

International Processing/Rejecting Authorizations

  1. The taxpayer's representative will be the first option when additional contact is needed because 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.

International Processing Form 2848 Processing Addendum
  1. Under some circumstances, married taxpayers are prohibited from using a joint-filing status FS 2 when submitting a return (e.g., when both spouses are nonresident aliens for the entire tax year). See Publication 519, United States Tax Guide for Aliens. 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.

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 5 business 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.

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. (e.g., the addition and/or deletion of specific duties for a specific representative. The utilization of a 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.

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 Additional acts authorized listed on Line 5a. 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.

Additional CAF Processing

  1. This section provides information for miscellaneous CAF processing.

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 Form 941 filer or opted to be a Form 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.

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, and/or

    • Penalty.

Affordable Care Act (ACA) Authorizations

  1. The Affordable Care Act (ACA), also known as the Health Care Law, was signed into law in March 2010. It contains comprehensive health insurance reforms for both individuals and employers. Under the ACA, individuals must have minimum essential coverage, qualify for an exemption, or make a shared responsibility payment (SRP).

  2. The following MFTs are used for ACA processing. This allows for the posting to the CAF database when indicated on a third-party authorization.

    • MFT 35 - Individual Shared Responsibility Payment, valid for SSN, 201401-12 through 201801-12.

    • MFT 65 - Mirrored account of MFT 35 above, valid for SSN, 201401-12 through 201801-12

    • MFT 43 - Employer Shared Responsibility Payment, valid for EIN, 201512 only and greater

    • MFT 79 - Insurance Provider Fee, Form 8963, valid for EIN, 201409 only and greater

  3. For MFT 35/65, use the table below to determine if the Individual Shared Responsibility Payment (SRP) should be entered to the CAF database.

    If And Then
    POA/TIA indicates Form 1040 MFT 35 and/or 65 modules exist Process POA/TIA to MFT 35 and/or 65 as appropriate
    POA/TIA indicates Form 1040 MFT 35 or 65 modules do not exist Do not process POA/TIA to MFT 35 or 65
    POA/TIA indicates Section 5000A Shared Responsibility Payment MFT 35 and/or 65 modules exist Process POA/TIA to MFT 35 and/or 65 as appropriate
    POA/TIA indicates Section 5000A Shared Responsibility Payment MFT 35 or 65 modules do not exist Process POA/TIA to MFT 35 only
    POA/TIA indicates Form 1040 and Section 5000A Shared Responsibility Payment MFT 35 and/or 65 modules exist Process POA/TIA to MFT 35 and/or 65 as appropriate
    POA/TIA indicates Form 1040 and Section 5000A Shared Responsibility Payment MFT 35 or 65 modules do not exist Process POA/TIA to MFT 35 only
  4. For MFT 43, use the table below to determine if the Employer Shared Responsibility Payment should be entered to the CAF database.

    If And Then
    POA/TIA indicates Section 4980H Employer Shared Responsibility Payment MFT 43 module exists Process POA/TIA to MFT 43
    POA/TIA indicates Section 4980H Employer Shared Responsibility Payment MFT 43 module does not exist Process POA/TIA to MFT 43
    POA/TIA does not indicate Section 4980H Employer Shared Responsibility Payment   Do not process POA/TIA to MFT 43
  5. For MFT 79, use the table below to determine if the Form 8963, Insurance Provider Fee, should be entered to the CAF database.

    If And Then
    POA/TIA indicates Form 8963 and/or Insurance Provider Fee MFT 79 module exists Process POA/TIA to MFT 79
    POA/TIA indicates Form 8963 and/or Insurance Provider Fee MFT 79 module does not exist Process POA/TIA to MFT 79
    POA/TIA does not indicate Form 8963 and/or Insurance Provider Fee   Do not process POA/TIA to MFT 79

General Durable POA Authorizations

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

  2. When a General Durable POA is received and no TIN, address or contact information is present, treat as classified waste. If you can locate contact information either within the General Durable POA or if the mailing envelope is attached with a return address, send the General Durable POA to the return address as stated on the envelope and request the Form 2848.

  3. If a General Durable POA is attached to a completed Form 2848, record the authorization to the CAF using the representatives signed date on Form 2848. The durable representative signs Form 2848, naming him/herself as the authorized third-party.

  4. If you can determine a General Durable POA is needed and it is not attached to a completed Form 2848, Power of Attorney and Declaration of Representative, return the Form 2848 to the originator and request the General durable POA.

Student Representative

  1. Taxpayers have the right to be told that if they cannot afford to hire a representative, they may be eligible for assistance from a Low Income Taxpayer Clinic (LITC).

  2. A student or law graduate who works in a Low Income Taxpayer Clinic (LITC), see IRC § 7526, or Student Tax Clinic Program (STCP) and is supervised by a practitioner may request permission to represent a taxpayer before the IRS. Per Delegation Order 25–18 (Rev. 2), see IRM 1.2.52.19, the Taxpayer Advocate Service (TAS) has the authority to issue special appearance authorizations. A student is an individual enrolled in an accredited law, business, or accounting school. A law graduate is an individual who has graduated from law school but it has been one year or less since graduation and such individual has not yet been admitted to the bar of any state, territory, or possession of the United States, including a Commonwealth or the District of Columbia. An individual who has taken a bar examination during that one year period and been unsuccessful, or who has applied for admission to a bar during that one year period but has been denied admission for any reason, is not a law graduate eligible for a special appearance authorization. Students and law graduates must attach a copy of the Authorization for Student/Law Graduate Tax Practice letter authorizing practice before the IRS when submitting a Form 2848 to the CAF Function for processing.

  3. The Designation Level to be used to process an authorization for students is Designation Level K.

    Note:

    The Authorization for Student/Law graduate Tax Practice letter issued by TAS must be attached to the Form 2848. If the Authorization for Student/Law graduate Tax Practice letter is not attached to the Form 2848, do not process, return the Form 2848 to the representative requesting the missing Authorization for Student/Law Graduate Tax Practice letter.

  4. Students/law graduates representations remain on the CAF for a total of 130 days. When students/law graduate’s representatives require additional time beyond the 130 days, the Low Income Taxpayer Clinic (LITC) Director must request TAS to issue a new Authorization for Students/law graduates Tax Practice letter extending the time for student authorizations for one or more students/law graduates. Students/law graduates must then submit a new Form 2848 along with the new Authorization for Students/law Graduates Tax Practice letter.

  5. Students/law graduates who have been granted the authority to practice by a special appearance authorization from TAS may, subject to any limitations set forth in the letter from TAS, fully represent taxpayers before any IRS office and are eligible to perform all acts listed on a properly executed Form 2848.

  6. Clinics are authorized to substitute or add students/law graduates after their Authorization for Student/law Graduate Tax Practice letter is granted. However, another student/law graduate roster is not created. Therefore, the clinic should simply attach a copy of their letter from TAS to show the clinic is approved. This should be deemed satisfactory by CAF personnel.

    Note:

    The taxpayer is not required to sign the second POA; however, the LITC Director must sign the second POA on behalf of the taxpayer and attach a copy of the original POA which authorizes the LITC Director to add or substitute a representative when the second POA is submitted. If the representative who is added to the POA is a student/law graduate, the Director must also attach a copy of the clinic's original Authorization for Student/Law Graduate Tax Practice letter from TAS.

MFT 31/65 (Split Spousal Assessment) Authorizations

  1. On occasion, to identify assessments against an individual taxpayer on a joint module, a mirrored account may be generated. The mirrored account will post as a MFT 31 or MFT 65. One or more of the following situations may result in a mirrored account:

    • Bankruptcy

    • Offer in Compromise

    • Restitution Related

    • Tax Court (may include Examination, Appeals, Automated Underreporter)

    • Innocent Spouse (Form 8857), Request for Innocent Spouse Relief

    • Exam agreed / unagreed cases

    • Taxpayer Assistance Order (TAO)

    • Manually Monitored Installment Agreement

    • Currently Non-Collectable (CNC)

  2. You must load the authorization to MFT 31 and/or MFT 65 in addition to MFT 30 if it is present for the years/periods requested. For more information, see IRM 21.3.7.8.3(3).

BMF Large Corporation Authorizations

  1. BMF Accounts are only worked in the Ogden (29) and Cincinnati (17) sites. Please follow instructions below for routing of attached correspondence. If you receive a Form 2848 or Form 8821 with an attached listing of subsidiaries of the EIN listed on the form:

    • Process EIN on Form.

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

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

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

Employee Plans (EP) Authorizations

  1. For Form 5500, Annual Return/Report of Employee Benefit Plan, Form 5500SF, Annual Return/Report of Employee Benefit Plan Short Form or Form 5500EZ, Annual Return of One Participant (Owners and Their Spouses) Retirement Plan, use MFT 74 for processing the authorization.

    1. Process the MFT 74 with a "P" at the end of the EIN.

    2. Use the plan number located in the last column of Line 1 on Form 2848 or Form 8821.

    3. If the plan number is not on the Form 2848 or Form 8821, research CC INOLES to obtain the plan number. If more than one plan number is present or a plan number cannot be located, reject the Form to request the correct plan number. See IRM 21.3.7.5.2 (6) If-And-Then chart.

    4. The CAF database validates the plan number of Employee Plan Master File (EPMF) transactions during NAP processing to eliminate unpostables.

  2. For Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, use MFT 76 for processing the authorization.

    1. An EIN or SSN is permissible for processing Form 5330 (MFT 76).

    2. Process the MFT 76 with an EIN or input a "V" at the end of an SSN.

    3. The EIN or SSN and plan number is a required field. If no plan number is provided, use 999 in the plan number field.

    4. Each plan year must be processed separately.

  3. Determine if authorization refers to both "returns and applications/qualifications," or whether it applies to "applications/qualifications" , Form 5300, Application for Determination for Employee Benefit Plan, Form 5307, Application for Determination for Adopters of Modified Volume Submitter Plans, and Form 5310, Application for Determination Upon Termination.

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

    1. Photocopy the authorization.

    2. Record the Forms portion of the authorization.

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

    4. Refer to IRM 21.3.7.8.9 for sending the original document.

Exempt Organization Authorizations (EO)

  1. The Ogden Accounts Management Campus (OAMC) processes authorizations for EOs. Only authorizations related to EO returns are recorded on the CAF.

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

    Internal Revenue Service

    PO Box 2508

    Room 4024

    Cincinnati, OH 45201

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

    1. Photocopy the authorization.

    2. Record the Forms portion of the authorization.

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

    4. Send the original document to the address above.

  4. If a POA is received in CAF for processing and refers to a Tax Exempt Bond (TEB) matter (Form 8038 series), it must provide a report number for the period listed. The report number is entered into the "plan number" field on the CAF input screen. This field is used to capture both plan and/or report number. If the report number is missing, reject the POA.

Blind Trust Authorizations

  1. All Blind Trust Authorizations are worked by the Ogden CAF Function.

  2. Blind trust POAs are coded with a "1" to the left of the taxpayer’s signature. A "B" must be entered in the Blind Trust Indicator field.

  3. 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.

  4. Blind trust POA/TIA to be processed to the CAF database is tax period specific.

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

Form 2553 Small Business Corporation Processing

  1. When the CAF Function receives authorizations regarding Form 2553, Election by a Small Business:

    • If listed as a tax matter on Form 2848 or Form 8821, consider as classified waste.

    • If received attached to Form 2848, or Form 8821, annotate "Not Recorded on CAF" on the authorization document and route to:
      Ogden Correspondence Control/Entity Control
      1973 No. Rulon White Blvd.
      M/S 6273
      Ogden, UT 84201

Specific Use Authorizations

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

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

    • Form SS-4, Application for Employer Identification Number

    • Form W-2, Series

    • Form W-4, Employee’s Withholding Allowance Certificate

    • Form W-7, Application for IRS Individual Taxpayer Identification Number

    • Form 843, Claim for Refund and Request for Abatement

    • Form 966, Corporate Dissolution or Liquidation

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

    • Form 1098, Mortgage Interest Statement

    • Form 1099, Series

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

    • Form 2553, Election by a Small Business Corporation

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

  3. Specific use requests should be treated as classified waste.

    Reminder:

    Specific issue information, e.g. Form 2553, shall be granted if a properly completed Form 2848 or Form 8821 is submitted. A properly executed, dated and signed Form 2848 or Form 8821 listing any of the above forms is considered a valid authorization. Even though most specific use issues are not processed to the CAF database, the representative must be afforded all authorizations allowed by the taxpayer on Form 2848 or Form 8821.

CAF Unpostables

  1. This section explains the instructions on how the CAF Function will research and resolve IMF, BMF and EPMF Unpostable Conditions (UPCs).

  2. Each IDRS transaction is subject to a series of validity checks prior to posting to the Master File.

  3. A transaction is deemed unpostable when it fails to pass any of the validity checks. The unpostable condition is returned to the originating campus for corrective action(s).

  4. There are Individual (IMF), Business (BMF), and Employee Plan (EPMF) unpostables (UPCs). Proper research must be conducted, prior to processing a third-party authorization, to prevent an unpostable condition from occurring.

  5. All CAF functions must work their unpostable listing each week.

Processing Unpostable Listing
  1. The Unpostable Listing, CCA 4243, is generated on a weekly basis using the Control D system. The listing is sorted by group number or generic department number. All three CAF Functions processing authorizations have a specific group number which are the following:

    • Memphis group number: 0332400000.

    • Ogden group number: 0432400000.

    • Philadelphia group number: 0532400000.

  2. There are three situations that create an unpostable condition (UPC) for which the CAF Function will need to correct. They are:

    1. TIN Mismatch.

    2. Name Control Mismatch.

    3. Fiscal Year Month (FYM) Mismatch.

  3. The table below indicates the IMF, BMF and EPMF UPC conditions that the CAF Function will need to research and resolve.

    IMF (UPC) BMF (UPC) EPMF (UPC) UPC Description and Corrective Action
    151/176 301 NA TIN Mismatch - Same corrective action for IMF/BMF.
    152/153/156 303 803 Name Mismatch - Same corrective action for IMF/BMF and EPMF.
    162 307 812 Fiscal Year Month (FYM) Mismatch - Same corrective action for IMF/BMF and EPMF.
  4. Each UPC involves a mismatch of information that was previously processed to the CAF incorrectly. Use Unpostable Job Aid for resolving UPC's. Seehttp://serp.enterprise.irs.gov/databases/irm-sup.dr/job_aid.dr/21.dr/21.3.dr/21.3.7.doc

  5. When the CAF Functions are completing their unpostable listings, (CCA 4243) they are required to correct and resolve the incorrect CAF database records manually.

  6. If after research, it is determined there is no corrective action to be taken to the unpostable condition, you must close the open control base on TXMODA.

Oral Tax Information Authorization (OTIA) Processing

  1. The IRS accepts non-written or verbal consents for disclosure of tax information only for the purpose of resolving federal tax matters.

  2. The OTIA is the verbal equivalent of Form 8821, Tax Information Authorization.

  3. The taxpayer’s identity is authenticated by the CSR per IRM 21.1.3.2.3, Required Taxpayer Authentication, satisfying the requirement that the IRS confirms the identity of the taxpayer. The CSR must prepare a Form 8821. The CSR will notate on the signature line, "Oral Tax Information Authorization" to alert the CAF function that a signature is not needed.

    Note:

    For BMF accounts, the CSR will notate the title on Line 7.

  4. Upon receipt of a Form 8821 notated in the signature line “Oral Tax Information Authorization or ORAL TIA”, the CAF examiner will:

    1. Research the appointee designated to determine if a CAF number exists or will be assigned.

    2. Secure and input authorization information, using Form 8821, Tax Information Authorization.

    3. Assign SDLN and include this OTIA type of authorization in your regular batch of work.

    Note:

    For Oral Disclosure Consent (ODC): See IRM 21.1.3.3.2, Oral Disclosure Consent/Oral TIA (Paperless F8821).

Office of Professional Responsibility (OPR)

  1. This section provides information on representational authority overseen by the Office of Professional Responsibility (OPR) that falls under various sections of Circular 230.

  2. OPR can verify whether a practitioner (e.g., attorney, CPA or EA) is suspended/disbarred from practice before the IRS.

  3. Information about an Enrolled Agent's or Enrolled Retirement Plan Agent's status may be obtained from the Return Preparer Office (RPO).

Eligibility Status Changes

  1. The Office of Professional Responsibility alerts the point of contact (POC) at the Memphis CAF Function via E-mail when a disciplinary action occurs and a CAF status must be updated. Only the Memphis CAF Function POC is authorized to make changes to the representative's eligibility status. Types of disciplinary action include:

    • Suspension

    • Disbarment

    • Ineligible

  2. The Memphis CAF Function POC must process any eligibility status change requests from OPR within 2 business days of the E-mail notification from OPR.

  3. The CAF POC must maintain a print of each E-mail notification received from OPR by received date, for a period of three years.

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

Authorizations Submitted by Suspended, Disbarred, or Ineligible Third Parties

  1. If the representative is listed as suspended, disbarred, or ineligible do the following:

    1. Do not input a Form 2848 signed by a suspended, disbarred, or terminated third-party. Instead, give the document and a print of the CC CFINK screen to the team manager or lead.

    2. The CAF Function manager must initiate contact with OPR to advise of the actions taken, provide supporting documentation upon request, verify the status of the third-party, and assist OPR in any further action. OPR may be contacted at the following e-mail address ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    3. If OPR states the third-party is not suspended, disbarred, or ineligible, immediately remove the action or practice code from the third-party’s CAF number record and process the authorization.

    4. If OPR verifies that the third-party is still currently suspended, disbarred, terminated or ineligible, do not process the authorization.

    5. Forward the original, unprocessed Form 2848 to OPR along with a memorandum explaining the situation, so that OPR can take the appropriate action.

    6. Send a copy of the unprocessed Form 2848 to the taxpayer.

    Technical Leads should follow the procedures in the table below for Enrolled Agents that are marked as ineligible in CAF.

    If And Then
    Form 2848 is received and it is notated on the CAF that the representative is ineligible
    • He/she has not said anything about eligibility, or,

    • is stating he/she qualifies for eligible status and has not attached documentation

    • He/she is stating that he/she qualifies for eligible status and has attached documentation to prove eligibility

    Return the Form 2848 and the attached documentation to the representative. Use the following paragraph, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
         
    Correspondence is received from an enrolled agent asking for information about their third-party authorization It is notated on the CAF that the enrolled agent is ineligible Send a letter to the enrolled agent using the following paragraph, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
  2. A representative currently under suspension/disbarment from practice before the IRS or whose enrollment/license is inactive, may submit a Form 8821, if it is properly executed by the taxpayer. However, the individual under suspension/disbarment may not appear on behalf of the taxpayer, represent the taxpayer, or in any way advocate for the taxpayer. Form 8821 authorizes the individual to receive taxpayer information only.

Deletions, Revocations and Withdrawals

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

    1. Authorizations expire with the death of the taxpayer and must be deleted from the CAF database after verification (death certificate or Form 56) is received.

    2. A process error occurs.

    Note:

    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.

  2. The taxpayer revokes an authorization. "Revoke" should be annotated in the top margin of a copy of the original authorization document. Unless otherwise specified, revoke authority from all third parties listed on the Form. Correspondence from the taxpayer that includes all essential elements with a current dated signature is acceptable.

  3. A third-party withdraws from the authorization. "Withdraw" should be annotated in the top margin of a copy of the authorization document. 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 third-party that includes all essential elements with a current dated signature is acceptable.

  4. A third-party or taxpayer may state withdraw or revoke and it will be honored.

    Reminder:

    When a taxpayer signs and files a new authorization (POA/TIA), all prior authorizations are systemically revoked for the same tax matter and periods listed on the authorization unless Line 6, Retention/revocation of prior POA/TIA is checked and a copy of the prior authorization the taxpayer wants to remain in effect is attached.

Form 2848 and Form 8821- Revocations and Withdrawals

  1. All Revocations and Withdrawals must be in written format. A verbal revocation/withdrawal cannot be accepted.

  2. The statement of revocation or withdrawal must indicate that the authority of the POA or TIA is revoked or withdrawn, list the matters and periods, and must be signed and dated by the taxpayer or representative as acceptable.

    Note:

    For a complete revocation/withdrawal, the taxpayer's revocation or the representative's withdrawal request may state remove all years/tax periods instead of listing the specific tax matters, years or periods.

  3. A listing of clients and respective TINs with a cover sheet requesting withdrawal by a third-party is acceptable only if the third-party provides a signed and dated written statement requesting withdrawal from representation on the noted clients and the third-party clearly identifies the clients requiring withdrawal.

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

Processing a Revocation/Withdrawal

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

  2. Correspondence must be generated to each party affected by the revocation action. Send the taxpayer correspondence confirming the completion of the request and send correspondence to the third-party advising that the authorization has been terminated.

  3. Upon deleting the authorization:

    1. Document the action in Accounts Management Services (AMS) as a history item and include the following:

      • Revocation;

      • IRS received date of revocation request;

      • Third-Party name control;

      • CAF number;

      • Applicable Form number;

      • Years and periods that were deleted;

      • SDLN;

      • Letter 2675C; and

      • Any other pertinent information about the case.

    2. Access CC CFINK using taxpayer’s TIN and print the screen for reference to use when deleting records.

  4. Use CAF IAT tool to send Letter 2675C, Power of Attorney Termination Response, to:

    1. Taxpayer

    2. Each third-party being revoked.

      Note:

      To generate letters to additional third parties, put a "Y" or a "D" in the CAF field of the Letter 2675C, Power of Attorney Termination Response.

  5. The Letter 2675C must include the tax periods that were removed because of the revocation/withdrawal request.

  6. 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 CC CFINK screen to the revocation/withdraw identifying the SDLN.

    Note:

    A print of the CC KAFADM screen is acceptable.

    1. Highlight the SDLN on the printed screen,

    2. Write "Revoke" or highlight "Withdraw/Revoke" on the printed screen, and

    3. Stamp with TE Identification number or IDRS stamp.

  7. Revocation and withdrawal attachments are maintained by the CAF Function 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.

  8. When an authorization submitted through DA or OTIA is revoked or withdrawn, the CAF database 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.

  9. 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.

    Note:

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

CAF 77, Representative/Client Listing

  1. The CAF generates a listing of clients, by representative, with required approval. This listing is called the CAF 77 and is generated by the CAF programmers in the Detroit Computing Center.

  2. The CAF 77 listing provides a listing of taxpayers, TINs, Form numbers, tax periods, and SDLNs.

  3. External Requesters may submit a written Freedom of Information Act (FOIA) request to receive a listing of their own clients. Sample language that includes all 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
    HQ FOIA & Tax Check Unit
    2385 Chamblee Tucker Rd.
    Stop 211
    Chamblee, GA. 30341-3446
    Fax # 770-936-1898

    Note:

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

Processing of CAF 77 Listings

  1. When a CAF 77 listing is received in a CAF Function for processing, use the IRS received date that is stamped on the CAF 77 listing and notate the employee IDRS number who is working the listing. Upon completion of the CAF 77 listing, the listing will be maintained for 7 years by the processing CAF function.

  2. When revocation is clearly identified by the representative, revoke all years and forms from the taxpayer's account. (This must be done before generating a letter to the taxpayer.)

  3. Use the CAF IAT letter tool to send Letter 2675C, Power of Attorney Termination Response, to the taxpayer.

  4. Document the action in Accounts Management Services (AMS) as a history item and include the following:

    • CAF 77 Revocation;

    • Date of listing (IRS received date);

    • Signature date of original SDLN;

    • Third-party name control;

    • CAF number;

    • Applicable Form number;

    • Years and periods that were deleted;

    • SDLN;

    • Letter 2675C, and

    • Any other pertinent information about the case.

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

Third-Party Undeliverable Mail, Notices and Correspondence

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

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

    2. Undeliverable mail is identified as mail received that states third-party has moved with no forwarding address, no receptacle, unable to forward, attempted-not known, no such address, not deliverable as addressed, box closed, return to sender etc.

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

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

    2. If valid, verify address, make changes as necessary using CC KAFRMR to update address changes, and re-mail the correspondence.

  3. If valid and the address matches CAF information, send a Letter 861C, Power of Attorney (Form 2848), Incomplete for Processing, to the taxpayer requesting a current address for the third-party. Input a "U" action code using CC KAFRMR and the CAF number using a new SDLN.

  4. When making a third-party undeliverable or updating an address, attach a new SDLN to a completed CC UPRCF screen print and attach to undeliverable correspondence. Keep in regular block of work. Do not detach envelope.

  5. If new information is received to update the third-party record, remove the "U" indicator by inputting a "2" in the undeliverable field on CC KAFRMR to ensure the third-party receives authorized notice copies.

    Note:

    If research indicates that the POA is not valid, you may treat the POA as classified waste.

Undeliverable Third-Party Authorization No Longer Valid

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

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

    2. Correct the address, if needed. Do not"U" code the third-party.

Undeliverable Mail/Deceased Third-Party

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

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

    2. Input the date the record was updated as the signature date.

    3. Treat the undeliverable item as classified waste.

CAF Communications, Reject/Return Authorization to Taxpayers

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

  2. For incomplete Form 2848 or Form 8821, reject for the missing information using the CAF IAT letter tool.

  3. If essential elements 1, 3, 4 and 5 are not present, the document must be returned to the taxpayer. If essential element 2 is not present, it must be returned to the representative. Refer to IRM 21.3.7.5.1, Essential Elements for Form 2848 and Form 8821 for a complete list of the essential elements.

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

    • The representative's name control (and CAF number if available). If CAF number is unavailable, include the representative's full name.

    • Type of form returned.

    • Tax period(s).

    • Brief reason why the form is being returned (rejected).

Reject/Return Authorizations to Third-Party

  1. The CAF Function must solicit the third-party for corrective action(s) by correspondence when any of the following information listed below is missing:

    1. Third-party dated signature.

    2. If information is missing for one representative, timely process all other representatives listed prior to rejecting with Letter 861C, Indicate "processed" next to the representative input to the system.

    3. Representative Designation, Licensing jurisdiction (state) or Bar, license, certification, registration or enrollment number (if applicable).

    4. Third-party attempting to act outside authority granted, e.g., redelegation or substitution.

    5. Authorization indicates retaining third parties from earlier authorization but copy of original authorization not attached.

  2. If the Form 2848 or Form 8821 is valid but unprocessable, reject the form using the CAF IAT Correspondex Letter 861C.

  3. If a Form 2848 with a revision date prior to October, 2011 is submitted after March 1, 2012 (IRS date stamped March 2, 2012 or later), the authorization will be returned to the representative requesting that a re-submission of the Form 2848, with an October 2011 or later revision is required. IRM 21.3.7.5.3(1) for more information.

  4. 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:

    • the representative's name control (and CAF number if available). If CAF number is unavailable, include the representative's full name

    • type of form returned

    • tax period(s)

    • brief reason why the form is being returned (rejected)

Rejecting Missing/Incomplete Authorizations

  1. If information is missing for one or more of the representatives and information is complete for others, timely process the processable 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 representative(s) processed.

    Note:

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

  2. When rejecting the original authorization(s) back to the taxpayer or the third-party representative, always cross out the IRS received date stamped on the authorization. This will ensure that the most current received date is used when the authorization is resubmitted to the CAF function for processing.

  3. When an authorization is returned to either the taxpayer or the representative, input an issue to the taxpayer's account using AMS (Accounts Management Services). Include the representatives name, type of Form returned, tax period and in one sentence, include why the Form is being returned. This includes partial rejections.

Systemic Letters/Notices, Representative Notice CP 547

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

  2. All responses to CP 547, are resolved by the CAF Function.

  3. If the CP 547 is returned or information is received requesting an update to the third-party name, address or telephone number record, take the following actions:

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

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

    3. If updating the representative name, address or telephone number, attach new SDLN and put document in regular block of work.

Representative Notice CP 548 A-H

  1. CP 548, Change to your Representative, was 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, currently suspended from use until further notice and they are as follows:

    • CP 548 A, Disbarred, reserved for OPR

    • CP 548 B, Suspended, reserved for OPR

    • CP 548 C, Undeliverable, reserved for CAF

    • CP 548 D, Deceased, reserved for CAF

    • CP 548 E, Retired, reserved for CAF

    • CP 548 F, Ineligible, reserved for OPR

    • CP 548 G, Terminated, reserved for RPO

Taxpayer and Representative Letters (CAF Letters)

  1. The following is a list of approved correspondence letters for use by the CAF functions. Sites should not use quick notes or locally developed letters without Headquarters authorization.

    1. Letter 861C - Power of Attorney, Tax Information Authorization and/or United States Estate Tax Return (Form 2848, Form 8821, or Form 706 Incomplete for Processing, will be used when:
      - An authorization is incomplete for the taxpayer, or
      - An authorization is incomplete for a third-party.

    2. Letter 1727C - Power of Attorney Representative Number, will only be used:
      - To advise the third-party of CAF number(s), or
      - To refer third-party to the Freedom of Information Act (FOIA) client listing request procedures.

    3. Letter 2475C - Address Change Request, will be used:
      - When a change of address is indicated, or
      - To obtain corrected information regarding the third-party.

    4. Letter 2673C - Representative/Taxpayer Response, will be used:
      - Revocation/withdrawal statements,
      - 3 future year recording limitation, or
      - Representative not eligible to practice.

    5. Letter 2675C - Power of Attorney Termination Response, will be used:
      - Notifying the taxpayer of a withdrawal, or
      - Notifying the third-party of a revocation.

    6. Letter 4527C - CAF Designation Level H Rejection, will be used when:
      - Notifying a taxpayer that an Unenrolled Tax Return Preparer did not prepare the return, or
      - Notifying a taxpayer that the year(s) requested are not under examination.

Transcripts

  1. This section provides information for various types of transcripts.

Transcripts, BMF Account Merge

  1. When the 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.

  2. 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.

  3. 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.

Transcripts, IMF Account Merge

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

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

  3. 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."

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

Transcripts, EPMF CAF Merge

  1. 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.

  2. 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.

  3. 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."

Transcripts, EPMF NOMRG-848 and NOMRG-846

  1. 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.

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

  3. 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.

Transcripts, EPMF-EP-CAF-PLN

  1. 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.

  2. 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.

  3. 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.

Transcripts, EPMF DOC 64-848 and DOC 64-846

  1. 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.

  2. 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.

  3. 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.

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

State Mapping, Where to File Form 2848, 8821 and/or 706

State OAMC CAF Unit MAMC CAF Unit
Alabama   X
Alaska X  
Arizona X  
Arkansas   X
California X  
Colorado X  
Connecticut   X
Delaware   X
District of Columbia   X
Florida   X
Georgia   X
Hawaii X  
Idaho X  
Illinois   X
Indiana   X
Iowa X  
Kansas X  
Kentucky   X
Louisiana   X
Maine   X
Maryland   X
Massachusetts   X
Michigan   X
Minnesota X  
Mississippi   X
Missouri X  
Montana X  
Nebraska X  
Nevada X  
New Hampshire   X
New Jersey   X
New Mexico X  
New York   X
North Carolina   X
North Dakota X  
Ohio   X
Oklahoma X  
Oregon X  
Pennsylvania   X
Rhode Island   X
South Carolina   X
South Dakota X  
Tennessee   X
Texas X  
Utah X  
Vermont   X
Virginia   X
Washington X  
West Virginia   X
Wisconsin X  
Wyoming X  

Forms and Codes

FORM MFT TITLE TIN FILING PERIOD
Civil Penalty -Valid after 1981 13 Civil Penalty, 8278, 2749, CVPN, TFRP EIN Any
Civil Penalty -Valid after 1981 55 Civil Penalty, 8278, 2749, CVPN, TFRP SSN Any
CT 1 09 Railroad Retirement EIN CY
11-C 63 Occupational Tax & Registration for Wagering EIN CY/FY
706 Series (filed only once) 52 U.S. Estate Tax SSN (V) 000000
706 GSD 78 Generation Skipping Transfer Tax Return for Distribution EIN or an SSN (V, W) CY
706 GST 77 Generation Skipping Transfer Tax Return for Termination EIN CY
709 Series 51 Gift Tax Return SSN (V, W) CY
720 03 Excise Tax EIN Quarterly
730 64 Wagering EIN Monthly
940 Series 10 Unemployment Tax EIN CY
941 Series 01 Withheld Income/FICA EIN Quarterly
942 Valid 1994 and Prior 04 Household Employees EIN Quarterly
943 Series 11 Agriculture/FICA EIN CY
944 Valid after 2006 14 Employer's Annual Tax Return EIN CY
945 Valid after 1994 16 Payer's Annual Tax Return EIN CY
990 67 Exempt Tax Return EIN CY/FY
990-C - Valid 2005 and prior 33 Farmers Co-op Tax Return EIN CY/FY
990-EZ 67 Short Form Return of Organization Exempt from Income Tax EIN CY/FY
990-PF 44 Return of Private Foundation EIN CY/FY
990-T 34 Exempt Organization Business Income Tax Return EIN CY/FY
1023/1024/1028 (EO. Applications)   See IRM 21.3.7.8.9    
1040 30 Individual Income Tax Return SSN CY/FY
1040 35/65 Section 5000A Individual Shared Responsibility Payment/Mirrored to Split Spousal Assessment of SRP SSN CY/FY 2014 and greater for both MFTs
1040NR (Non Resident)* 30 Non Resident Alien Income Tax Return SSN CY/FY
1040PR (Puerto Rico) ** 30 Self Employment Tax Return - Puerto Rico SSN CY/FY
1041 Series 05 U.S. Tax Return for Estates & Trusts EIN CY/FY
1041-A 36 U.S. Information Return-Trust Accumulation of Charitable Amounts EIN CY/FY
1042 Valid after 1985 12 Annual Withholding Return for U.S. Source Income for Foreign Persons EIN CY
1065 06 Partnership EIN CY/FY
1066 07 Real Estate Mortgage Investment Conduit Income Tax Return EIN CY/FY
1120 Series 02 Corporate Tax Return EIN CY/FY
2290 60 Highway Use Tax EIN Any
4720 (Process one year at a time) 50 Return of Certain Excise Tax on Charities & Other Persons EIN CY/FY
         
5227 37 Split Interest Trust Information Return EIN CY
5300/5307/5310 (EP Applications   See IRM 21.3.7.8.8    
5330 (Process one year at a time) 76 Return of Excise Taxes Related to Employee Benefits Plan EIN/SSN (V) CY/FY
5500 Series 74 Employment Benefit Plan EIN(P) CY/FY
6406 (EP Application)   See IRM 21.3.7.8.8    
8804/8805 - Valid after 2004 08 Partnership Withholding Tax EIN CY/FY
8038/8038–CP/8038–G/8038-GC/ 8038–R/8038–T 46 Misc. Tax Exempt Bond Issues EIN CY/FY
8038–B 85 Information Return for Build America Bonds and Recovery Zone Economic Development Bonds EIN CY/FY
8038-TC 86 Information Return for Tax Credit Bonds and Specified Tax Credit Bonds EIN CY/FY
8288 17 U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests EIN /SSN Any
8752 - Valid after 1991 15 Required Payment or Return EIN CY
8857 31 Innocent Spouse, Separation of Liability or Equitable Relief SSN CY/FY
8963 79 Insurance Provider Fee EIN FY/09 only 2014 and greater
  43 Section 4980H Employer Shared Responsibility Payment EIN CY/12 only 2015 and greater

* Return information only - Send to ASPC - only if the taxpayer is a non-resident, not just filed a non-resident return.

**Return information only - Send to PSC - only if the taxpayer or representative have a foreign address.

CY = Calendar Year and FY = Fiscal Year

Foreign Country Codes (A thru L)

Country Name Abbr. Country Name Abbr,
Afghanistan AF Egypt EG
Aland Islands AX El Salvador SV
Albania AL England UK
Algeria DZ Equatorial Guinea GQ
American Samoa AS Eritrea ER
Andorra AD Estonia EE
Angola AO Ethiopia ET
Anguilla AI Falkland Islands (Malvinas) FK
Antarctica AQ Faroe Islands FO
Antigua & Barbuda AG Fiji FJ
Argentina AR Finland FI
Armenia AM France FR
Aruba AW French Polynesia PF
Australia AU Gabon GA
Austria AT Gambia GM
Azerbaijan AZ Georgia GE
Bahamas BS Germany DE
Bahrain BH Ghana GH
Bangladesh BD Greece GR
Barbados BB Greenland GL
Belarus BY Grenada GD
Belgium BE Guam *
Belize BZ Guatemala GT
Benin BJ Guernsey GG
Bermuda BM Guinea GN
Bhutan BT Guinea-Bissau GW
Bolivia, Plurinational State Of BO Guyana GY
Bonaire, Sint Eustatius and Saba BQ    
Bosnia-Herzegovina BA Haiti HT
Botswana BW Heard Island & McDonald Island HM
Bouvet Island BV Honduras HN
Brazil BR Hong Kong HK
British Indian Ocean Territory IO Howland Island HQ
British Virgin Islands VI Hungary HU
Brunei Darussalam BN Iceland IS
Bulgaria BG India IN
Burkina Faso BF Indonesia ID
Burma BM Iran, Islamic Republic of IR
Burundi BI Iraq IQ
Cambodia KH Ireland IE
Cameroon CM Isle of Man IM
Canada CA Israel IL
Cape Verde CV Italy IT
Cayman Islands KY Jamaica JM
Central Africa Republic CF Jan Mayen JN
Chad TD Japan JP
Chile CL Jarvis Island DQ
China CN Jersey JE
Christmas Island CX Johnston Atoll JQ
Clipperton Islands IP Jordan JO
Cocos (Keeling) Islands CC Kazakhstan KZ
Colombia CO Kenya KE
Comoros KM Kingman Reef KQ
Cook Islands CK Kiribati KI
    Korea, Democratic People's Republic of KP
Costa Rica CR Korea, Republic of KR
Cote d’Ivoire CI Kosovo KV
Croatia HR Kuwait KW
Cuba CU Kyrgyzstan KG
Cyprus CY Laos People's Democratic Republic LA
Czech Republic CZ Latvia LV
Democratic Republic of the Congo CD Lebanon LB
Denmark DK Lesotho LS
Dhekelia DX Liberia LR
Djibouti DJ Libya LY
Dominica DM Liechtenstein LI
Dominican Republic DO Lithuania LT
Ecuador EC Luxembourg LU

* See Exhibit 21.3.7-8, U.S. Possessions Country Codes

Foreign Country Codes (M thru Z)

Country Name Abbr. Country Name Abbr.
Macau MO Saudi Arabia SA
Macedonia, The Former Yugoslav Republic of MK Scotland UK
Madagascar MG Senegal SN
Malawi MW Serbia RS
Malaysia MY Seychelles SC
Maldives MV Sierra Leone SL
Mali ML Singapore SG
Malta MT Slovakia SK
Marshall Islands * Slovenia SI
Mauritania MR Solomon Islands SB
Mauritius MU Somalia SO
Mayotte YT South Africa ZA
McDonald Island & Heard Island HM South Georgia South Sandwich GS
Mexico MX    
Micronesia (Federated States) * Spain ES
Midway Islands MQ Spratly Islands PG
Moldova, Republic of MD Sri Lanka LK
Monaco MC St Helena SH
Mongolia MN St Kitts & Nevis SC
Montenegro ME St Lucia ST
Montserrat MS St Pierre & Miquelon SB
Morocco MA St Vincent & the Grenadines VC
Mozambique MZ Sudan SD
Namibia NA Suriname SR
Nauru NR Svalbard and Jan Mayen SJ
Navassa Island BQ Swaziland SZ
Nepal NP Sweden SE
Netherlands NL Switzerland CH
Netherlands Antilles NT Syrian Arab Republic SY
New Caledonia NC Taiwan, Province of China TW
New Zealand NZ Tajikistan TJ
Nicaragua NI Tanzania, United Republic of TZ
Niger NE Thailand TH
Nigeria NG    
Niue NU    
Norfolk Island NF Timor-Leste TL
    Togo TG
    Tokelau TK
Northern Mariana Island * Tonga TO
Norway NO Trinidad and Tobago TT
Oman OM Tunisia TN
Pakistan PK Turkey TR
Palau * Turkmenistan TM
Palestinian Territory, Occupied PS Turks and Caicos Islands TC
Panama PA Tuvalu TV
Papua New Guinea PG Uganda UG
Paracel Islands PF Ukraine UA
Paraguay PY United Arab Emirates AE
Peru PE United Kingdom GB
Philippines PH UNKNOWN XX
Pitcairn PN Uruguay UY
Poland PL US Virgin Islands *
Portugal PT USA US
Puerto Rico * Uzbekistan UZ
Qatar QA Vanuatu VU
Reunion RE    
Romania RO Venezuela, Bolivarian Republic of VE
Russian Federation RU Vietnam VN
Rwanda RW Wake Island WQ
Saint Barthelemy BL    
Saint Martin, French Part MF Wallis and Futuna WF
    Western Sahara EH
Samoa WS    
San Marino SM Yemen YE
Sao Tome Principe ST Zambia ZM

* See Exhibit 21.3.7-8, U.S. Possessions Country Codes

U.S. State Codes

State Name Abbr. State Name Abbr.
Alabama AL Montana MT
Alaska AK Nebraska NE
Arizona AZ Nevada NV
Arkansas AR New Hampshire NH
California CA New Jersey NJ
Colorado CO New Mexico NM
Connecticut CT New York NY
Delaware DE North Carolina NC
District of Columbia DC North Dakota ND
Florida FL Ohio OH
Georgia GA Oklahoma OK
Hawaii HI Oregon OR
Idaho ID Pennsylvania PA
Illinois IL Rhode Island RI
Indiana IN South Carolina SC
Iowa IA South Dakota SD
Kansas KS Tennessee TN
Kentucky KY Texas TX
Louisiana LA Utah UT
Maine ME Vermont VT
Maryland MD Virginia VA
Massachusetts MA Washington WA
Michigan MI West Virginia WV
Minnesota MN Wisconsin WI
Mississippi MS Wyoming WY
Missouri MO    

Canadian Province Codes

Province Name Abbr.
Alberta AB
British Columbia BC
Manitoba MB
New Brunswick NB
New Foundland & Labrador NL
Northwest Territory NT
Nova Scotia NS
Nunavut NU
Ontario ON
Prince Edward Island PE
Quebec QC
Saskatchewan SK
Yukon Territory YT

Mexican Territory Codes

Territory Name Abbr. Territory Name Abbr.
Aguascalientes AG Morelos MR
Baja, California (South) BJ Nayarit NA
Baja, California (North) BA Nuevo Leon NN
Campeche CE Oaxaca OA
Chiapas CI Puebla PB
Chihuahua CH Queretaro de Arteaga QU
Coahuila de Zaragoza CU Quintana Roo QR
Colima CL San Luis Potosi SL
Distrito Federal DF Sinaloa SI
Durango DO Sonora SO
Guanajuato GX Tabasco TB
Guerrero GR Tamaulipas TA
Hidalgo HL Tlaxcala TL
Jalisco JL Veracruz-Llave VC
Mexico, Estado de MX Yucatan YU
Michoacande Ocampo MC Zacatecas ZA

U.S. Possessions Country Codes

U.S. Possessions   Country Code
America Samoa   AS
Guam   GU
Marshall Islands   MH
Federated States of Micronesia   FM
Commonwealth of the Northern Mariana Islands   MP
Palau   PW
Puerto Rico   PR
Virgin Islands   VI