Mendoza, an EA, is asked by a client to handle a 2024 audit, sign an extension of the assessment period, and accept the eventual closing agreement. The client also wants Mendoza's paralegal to receive copies of every IRS letter. One form does both jobs, the other does only the second, and the wrong line entry on either kills the entire authorization.
A power of attorney is the taxpayer's written grant of authority to a named representative to act on the taxpayer's behalf before the IRS. Without it, the IRS speaks only with the taxpayer. With a valid POA on file, the IRS may communicate with the representative on the matters and tax periods listed, the representative may negotiate, sign documents the form permits, and bind the taxpayer within the scope granted.
The IRS uses two distinct forms:
- Form 2848, Power of Attorney and Declaration of Representative. Confers representation rights to a Circular 230 practitioner (or eligible §10.7 individual).
- Form 8821, Tax Information Authorization. Confers only the right to inspect and receive the taxpayer's confidential return information. No representation, no advocacy, no signing.
Common mistakes
- Treating Form 872 extensions or §7121 closing agreements as line 5a acts. Both fall within the default line 3 grant for the listed matters and periods. Line 5a is for signing a return, third-party disclosure, and substituting or adding representatives. Trap answer: "The EA cannot sign Form 872 without a line 5a entry."
- Using Form 8821 when representation is needed. Form 8821 grants information receipt only. An IRS conference, an Appeals brief, or a negotiated settlement cannot be conducted under an 8821. Trap answer: "8821 lets the appointee argue the client's case."
- Forgetting that a new Form 2848 revokes prior POAs by default. Unless the taxpayer checks line 6 and attaches the prior POA, the old representative is terminated when the new form is processed. Trap answer: "Filing a new 2848 just adds another rep."
Bottom line
- Form 2848 authorizes representation (speaking, signing, negotiating); Form 8821 authorizes disclosure only (information receipt, no advocacy).
- CAF number is assigned automatically on the first Form 2848 or 8821 filed and indexes every active authorization; it is administrative, not a practice credential.
- Signing the return for a client requires specific Form 2848 line 5a authorization PLUS one §1.6012-1(a)(5) condition (disease/injury, 60-day continuous absence, or IRS permission).
- Extension of assessment period (Form 872) and closing agreements (Form 866/906) fall within the representative's default Form 2848 authority; the line 3 grant covers signing agreements, consents, and waivers.
Exam shortcut
"Speak or sign" = 2848; "read or receive" = 8821. Map every fact pattern to one of these verbs before choosing the form. No line 5a entry, no special power. If a question asks whether the rep can extend the statute, sign a closing agreement, sign the return, substitute counsel, endorse a refund check, or disclose to a third party, the default answer is NO unless line 5a expressly grants...
The full lesson (about 4,118 words, 27 min read) adds 2 worked examples, all 6 common mistakes, a self-check, free in the app.
Learning objectives
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