All taxpayers should know the types of authorizations for third-party representatives
- September 22nd, 2022
When working with the IRS, taxpayers have a right to represent themselves. They can also choose a third-party agent to represent them, like a tax professional or family member. Taxpayers should be sure that their representative is authorized to practice before the IRS.
Taxpayers who want to have a third party represent them must formally grant them permission to do so.
Here are different types of third-party authorizations:
- Power of Attorney – Allows someone to represent a taxpayer in tax matters before the IRS. The representative must be an individual authorized to practice before the IRS.
- Tax Information Authorization – Appoints anyone to review or receive a taxpayer’s confidential tax information for the type of tax for a specified period.
- Third Party Designee – Designates a person on the taxpayer’s tax form to discuss that specific tax return and year with the IRS.
- Oral Disclosure – Authorizes the IRS to disclose the taxpayer’s tax info to a person the taxpayer brings into a phone call or meeting with the IRS about a specific tax issue.
Even with an authorized third party representing them, taxpayers are ultimately responsible for meeting their tax obligations.