Updated on June 14th, 2022
A tax power of attorney is a document used for granting an individual permission to view, handle, and/or file a person’s federal or state taxes on their behalf. If the federal form is used, it allows a person to represent another in front of the IRS. If a state-specific tax POA is chosen, it permits representation involving that state’s revenue service. Since it is a limited type of agreement, it only grants the representative authority over specific actions, as specified in the document.
- Form 2848 Instructions – Detailed instructions on how to complete Form 2848 Tax Power of Attorney.
- Form 8821 (Tax Information Authorization) – Authorizes a person (designee) to inspect/receive confidential information relating to a taxpayer’s return and IRS records.
- Form 8821 Instructions – Instructions on how to complete Form 8821 Tax Information Authorization.
What a tax power of attorney authorizes:
Depending on what the principal states in the form, the selected agent has the ability to execute the following duties:
- View and handle sensitive tax documents and information.
- Sign the principal’s tax return.
- Permit disclosure to third (3rd) parties.
- Add or substitute other representatives.
- Other powers as designated by the principal on the form.
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
How to use a Tax Power of Attorney
Step 1 – Select the Agent
The taxpayer (principal) can nominate anyone to act as their representative, as long as the agent is of sound mind and is an adult over the age of eighteen (18). A principal will most likely appoint one (1) of the following individuals:
- Certified public account (CPA)
- Tax attorney
- Enrolled agent
- Family member
- Close friend
Choosing a tax professional is the recommended option due to their credentials and experience with tax returns, accounting, and other pertinent skills.
Step 2 – Complete the Form
If assigning representation over Federal taxes, the requirements include the following:
- Form 2848
- Signing requirements: Signed by the principal (taxpayer) and the representative(s). Notarization is not required.
If assigning representation over state taxes, the following steps must be taken:
- Select a state
- Signing requirements: Signed by the taxpayer and notarized (if required by state law).
Step 3 – Send to Appropriate Address
For Federal taxes:
If the principal lives in AL, AR, CT, DE, DC, FL, GA, IL, IN, KY, LA, ME, MD, MA, MI, MS, NH, NJ, NY, NC, OH, PA, RI, SC, TN, VT, VA, or WV, Form 2848 should be sent to the following address:
5333 Getwell Road
Memphis, TN 38118
If the principal lives in AK, AZ, CA, CO, HI, ID, IA, KS, MN, MO, MT, NE, NV, NM, ND, OK, OR, SD, TX, UT, WA, WI, or WY, the form should be sent to the following address:
1973 Rulon White Blvd., MS 6737
Ogden, UT 84201
For State Taxes:
The form should be sent to the address as instructed on the form.