In the tax context, a Power of Attorney (POA) is a legal document — filed on Form 2848 — that grants an authorized representative the right to act on behalf of a taxpayer in dealings with the IRS.
What a tax POA authorizes: - Represent the taxpayer in all IRS proceedings. - Sign agreements, consents, and waivers. - Receive IRS notices and correspondence (including confidential tax information). - Substitute another representative (if the POA grants this right).
Duration and revocation: - A Form 2848 POA generally remains in effect until revoked by either party or until the matter is concluded. - The taxpayer can revoke at any time by sending written notice to the IRS. - Filing a new Form 2848 for the same matter automatically revokes any prior POA on file with the IRS (unless the taxpayer specifically retains the prior representative).
Tax POA vs. Financial/Legal POA: - A tax POA (Form 2848) is specific to IRS matters. - A general durable power of attorney (state law document) allows broad financial management for an incapacitated person — but does NOT substitute for Form 2848 for IRS representation purposes.
Who must sign Form 2848: - The taxpayer (or an authorized fiduciary such as an estate executor, trustee, or guardian). - The representative must also sign and include their PTIN and designation.
IRS CAF system: The IRS records Form 2848 in its Centralized Authorization File (CAF), allowing any IRS employee to verify the representative's authority.
> Exam tip: Form 2848 = tax-specific POA. A general durable POA does not authorize IRS representation — Form 2848 must be filed. Filing a new 2848 revokes prior ones on the same matter. EA Part 3 topic.