SEE Part 3 representation explained

Representation before the IRS is worth 25 of the 85 scored questions on SEE Part 3 (about 29%). It covers the paperwork that lets you act for a client — Form 2848, Form 8821 and the CAF system — and the preliminary work of building a case: identifying the issue, assessing finances, finding authority and watching deadlines.

Form 2848 versus Form 8821

The single most tested distinction in this domain.

A representative on Form 2848 may, by default, receive confidential information and perform any act the taxpayer can perform for the listed matters — including signing a consent to extend the assessment period or a closing agreement. The form sets out what needs specific authorisation on line 5a:

• Substituting or adding another representative
• Signing the taxpayer’s return
• Consenting to disclosure of return information to a third party
• Using an intermediate service provider to access records

And one thing no representative may ever do: endorse or negotiate the taxpayer’s refund check, or have a refund directed into an account the representative controls.

Details worth memorising

• Up to four representatives can be named on the form; no more than two can receive copies of IRS notices for the same matter.
• Future periods are recorded on the CAF only up to three years after December 31 of the year the IRS receives the form. Past periods can be listed without limit.
• If the taxpayer signs first, the representative must sign within 45 days (60 days for taxpayers abroad).
• A non-IRS power of attorney, including a durable power under state law, is acceptable if it contains the required information, but it cannot be recorded on the CAF without a completed Form 2848 attached.

Signing a return for the taxpayer

A representative may sign an income tax return only in three situations under the regulations: disease or injury, continuous absence from the United States for at least 60 days before the due date, or specific permission from the IRS for other good cause. The authority must be granted on the 2848, and the form is attached to the return.

Changing, revoking and withdrawing

• A taxpayer revokes by writing “REVOKE” across the top of the first page with a current signature and date, by a signed statement of revocation, or by filing a new 2848 for the same matters.
• A representative withdraws by writing “WITHDRAW” across the first page, signing and dating it, or by a written statement identifying the matters and periods.

The CAF number

The Centralized Authorization File lets IRS staff confirm your authority without the original document. A CAF number is a unique nine-digit number the IRS assigns to a representative — it is not your SSN, PTIN or enrollment number. You do not need one to submit your first 2848; write “None” and the IRS assigns it.

Specific-use authorisations, such as private letter ruling requests and FOIA requests, are not recorded on the CAF.

Publication 216, Conference and Practice Requirements, sets out the rules for conferences: a valid authorisation on file before you discuss a client’s matter, and eligibility to practise before you represent.

Building the case

The outline treats preliminary work as its own topic. Before you act:

1. Identify the issue and the facts. Pull transcripts through e-Services or your Tax Pro Account.
2. Screen for criminal exposure. The practitioner privilege does not apply in criminal matters; refer the client to a criminal tax attorney.
3. Check competence, capacity and conflicts.
4. Assess the client’s finances — ability to pay, bankruptcy, garnishments, assets, insolvency — which decides between full pay, installment agreement, offer in compromise and currently not collectible.
5. Gather documentation: statements, receipts, legal documents, prior and later returns, corporate minutes.

Legal authority

Know the hierarchy: the Internal Revenue Code, then regulations, then revenue rulings and procedures, and case law. A private letter ruling binds only the taxpayer who requested it. The Internal Revenue Manual guides IRS staff but is not authority a taxpayer can rely on. IRS publications and forms are helpful but non-authoritative.

Statutes of limitations

Also in scope

Math-error and under-reporting notices, FOIA requests, avoidance versus evasion, identity theft, the Taxpayer Advocate Service (for significant hardship or when normal channels have failed), and the limit of EA practice: non-attorneys must pass the Tax Court’s own examination to practise there.

Sample questions