Power of Attorney Must Specify Returns Covered by Representation

A power of attorney form must specify each return that a taxpayer’s representative is authorized to discuss with the IRS regardless of whether other returns are attached to the form.

The taxpayer’s representative won’t be able to discuss with the IRS a civil penalty associated with an international information return (IIR) attached to an income tax return unless Form 2848, Power of Attorney and Declaration of Representative, lists the IIR in addition to the income tax return, the Office of Chief Counsel said in a chief counsel advice memorandum (CCA 201736021) dated August 1, released Sept. 8.

“We recognize that the current form instructions are not a paragon of clarity on this issue,” the office said.

“It might be useful to amend the form instructions to specifically provide whether penalties associated with forms that are or should be attached to a certain ‘parent’ tax return are within the scope of representation if line 3 of the Form 2848 lists only the parent form,” the office added.

The CCA is available here.