The Internal Revenue Service (IRS) has launched a new feature that aims to give taxpayers digital control over who can represent them or view their tax records, in what it calls a “groundbreaking” step in the agency’s expansion of electronic options for taxpayers and tax professionals.
The new feature will allow individual taxpayers to authorize their tax practitioner to represent them before the IRS with a Power of Attorney (POA) and to view their tax accounts with a Tax Information Authorizations (TIA).
Chuck Rettig, IRS commissioner, said: “The ability for taxpayers to connect online with their tax professional is a groundbreaking step for the IRS. This is the first, basic step toward a more fully integrated digital tax system that will benefit taxpayers, tax professionals and the IRS.”
As of today, tax professionals may go to the new Tax Pro Account on IRS.gov to digitally initiate POAs and TIAs. These digital authorization requests are simpler versions of Forms 2848 and 8821.
Once completed and submitted by the tax professional, the authorization requests will appear in the taxpayers’ Online Account for their review, approval or rejection and electronic signature.
Because the taxpayers’ identities already are verified at the time of login, they check a box as their signature and submit the authorization request to the IRS.
A key benefit is the completed digital authorization, if accurate, will go directly to the Centralized Authorization File (CAF) database and will not require manual processing.
Most requests will be immediately recorded and appear on the list of approved authorizations in the taxpayer’s Online Account and the tax professional’s Tax Pro Account. Some authorizations may take up to 48 hours. Tax professionals may then go to e-Services Transcript Delivery Service to see the taxpayer’s records.
This initial launch of the Tax Pro Account represents the first release of the tool. Over time, the IRS said additional functionality will be added for taxpayers and tax professionals that will increase the options for electronic interactions.