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8.1.6.1
(10-23-2007)
Practice Before Appeals
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Each Appeals Officer or Settlement Officer will verify the conference and practice requirements are met before disclosing
confidential taxpayer information or allowing practice before Appeals. Disclosure rules and conference/practice requirements
are identified in the following publications, regulation sections, IRM sections and IRC section:
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IRC 6103,Confidentiality and Disclosure of Returns and Return Information;
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IRM 11.3, Disclosure of Official Information;
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Treasury Regulation Sections 601.501 through 601.509, Conference and Practice Requirements(26 C.F.R. 601.501 through 26 C.F.R 601.509 and Publication 216);
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Treasury Department 230, Regulations Governing the Practice for Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers
before the Internal Revenue Service(31 C.F.R Subtitle A, Part 10, revised as of June 20, 2005);
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Witnesses at Conferences ( Rev. Proc. 68-29, 1968-2 C.B., 913);
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IRC 21.3.7, Processing Third Party Authorizations to the Centralized Authorization File (CAF);and
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Publication 947, Practice Before the IRS and Power of Attorney.
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IRM 11.3.3, Distinctions Between Disclosure to Designees and the Conference and Practice Requirements compares the effect of a Form 8821,Tax Information Authorization, with a Form 2848. These two forms are sometimes confused.
8.1.6.1.1
(10-23-2007)
Disclosure of Information— Department of Justice
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Tax returns and related data are open to inspection by a United States Attorney or an attorney of the Department of Justice
only if they file a proper written application. See IRM 11.3, Disclosure of Official Information. This procedure also applies to other Justice Department employees such as Federal Bureau of Investigation agents. An application
is unnecessary in an income tax case being litigated by the Department of Justice, but adequate receipts must be obtained
for the material furnished. An application signed by the Chief of the Organized Crime and Racketeering Section does not meet
the requirements.
8.1.6.1.2
(10-23-2007)
Disclosure of Information of a Confidential Nature
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Generally, confidential taxpayer information can only be disclosed upon a taxpayer's written authorization. Frequently encountered
exceptions include:
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Representatives without a power of attorney or tax information authorization at a conference with the taxpayer;
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Estates, trusts and receiverships may be represented by their trustees, receiver, guardians, executors, or regular full-time
employees;
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Committees of Congress, Treasury personnel outside the Service, other Federal agencies and States;
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Witnesses at Conferences . See Rev. Proc. 68–29, 1968–2 C.B., 913;
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Counsel of Record before the United States Tax Court; and
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Others as defined in Section 10.7 of Circular 230.
8.1.6.1.2.1
(10-23-2007)
Disclosure of Information— Informants
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The identity of informants shall not be disclosed to any Service official or employee except on a "need-to-know"
basis in the performance of official duties.
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If you can avoid it, do not give any clues as to the existence or identity of an informant in an appeals case memo. If necessary,
write essential information in a separate supplemental memorandum subject to security requirements. Do not place a copy in
the administrative file or mail it to the Appeals Area Director or the Chief, Appeals, unless specifically requested.
8.1.6.1.2.2
(10-23-2007)
Authorizations to Disclose Information of a Confidential Nature—Forms 2848 and 8821
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Form 2848, Power of Attorney and Declaration of Representative or Form 8821, Tax Information Authorization, or other documents
meeting the requirements of IRC 6103 may authorize a third party to receive or inspect confidential taxpayer information.
8.1.6.1.3
(10-23-2007)
Representatives Qualified to Practice Before Appeals
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Qualifications for Practice Before the Internal Revenue Service are defined in Circular No. 230, Regulations Governing the
Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers before the Internal
Revenue Service, and 26 CFR 601.501–509 inclusive.
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Sections 10.5(c) and 10.7, Circular 230, permit defined individuals to practice without enrollment.
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Section 10.7(d) of Circular 230 permits the Director, Office of Professional Responsibility, to authorize individuals otherwise
ineligible to practice to represent another person in a particular matter. Individuals authorized to practice under this provision
are subject to the conditions set forth by the Director in his letter authorizing practice.
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Students working in a Low Income Taxpayer Clinic (LITC) or Student Tax Clinic Program (STCP) may represent taxpayers under
a special order by the Director, Office of Professional Responsibility. The instructions to Form 2848, Power of Attorney
and Declaration of Representative, require that such students attach a copy of the letter from the Office of Professional
Responsibility authorizing practice before the Internal Revenue Service. Students who have been authorized to practice by
special order may, subject to any limitations set forth in the letter from the Office of Professional Responsibility, represent
taxpayers before any IRS office and should be viewed the same as any other taxpayer’s representative for which a Form 2848has
been submitted.
8.1.6.1.3.1
(10-23-2007)
Prohibitions of Federal and State Officials or Employees in Representing Taxpayers Before the Service
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If a Federal or State official or employee appears to be representing a taxpayer under circumstances indicating a possible
violation of Circular 230's provisions, Service employees should advise such individual concerning the existence and content
of Circular 230. See sections 10.3(f) and (g) of Circular 230.
8.1.6.1.3.2
(10-23-2007)
Attorneys, Certified Public Accountants, Enrollees, Limited Practice and Special Orders
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Practice before the IRS includes all matters connected with a presentation to the IRS relating to a client's rights, privileges,
or liabilities under laws or regulations administered by the IRS. Such presentations include preparing and filing necessary
documents, corresponding and communicating with the IRS, and representing a client at conferences, hearings, and meetings.
An individual who practices is a representative. In order for the IRS to recognize an individual as a representative, he or
she must present evidence of representational authority.
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The following publications and forms are useful sources of information concerning practice before the IRS and powers of attorney.
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Treasury Department Circular No. 230, " Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled
Agents, Enrolled Actuaries, and Appraisers Before the Internal Revenue Service". Circular 230 is a pamphlet publication of
31 C.F.R. Part 10.
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Publication 216, "Conference and Practice Requirements" . This publication sets out the rules applicable to recognition as
a representative, including the requirements for powers of attorney. Publication 216 is a pamphlet publication of 26 C.F.R.
601.501 through 601.509.
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Publication 470, "Limited Practice Without Enrollment" . This publication sets out the rules applicable to limited practice
by unenrolled return preparers. Publication 470 is a pamphlet publication of Rev. Proc. 81-38.
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Rev. Proc. 68-29 explains the function of witnesses.
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Form 2848, Power of Attorney and Declaration of Representative. The separately published four-page Form 2848. Instructions
provide useful information concerning the validity of Form 2848.
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Form 8821, "Tax Information Authorization "
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Form 56, "Notice Concerning Fiduciary Relationship".
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In the event an authorized representative is not evident from the case file, the Appeals or Settlement Officer should make
an effort to identify the authorized representative either by contacting the taxpayer, researching IDRS for a Centralized
Authorization File (CAF) number via command code CFINK, or by any other means deemed appropriate. Special care should be taken
to ensure that the rules of disclosure, as discussed in IRM 11.3, Disclosure of Official Information, are not violated when identifying an authorized representative.
8.1.6.1.3.3
(10-23-2007)
Powers, Authorizations, Declarations— Form 2848
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While other statements can be used, Form 2848, Power of Attorney and Declaration of Representative, is convenient.
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The form has declarations as to current qualifications.
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The form authorizes disclosures of information of a confidential nature.
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The form provides optional authorizations to perform various other acts for the taxpayer.
8.1.6.1.4
(10-23-2007)
Disposition of Powers of Attorney
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When you receive a new Form 8821or Form 2848 during the consideration of a case by Appeals, you should make a copy and forward
it directly to the appropriate service center function for processing.
Note:
Refer to Form 2848and Form 8821to determine "where to file"
the forms, and the attached instructions on each form for what specific information is needed. Before you forward the
form, handwrite the Appeals Office symbols and address in the top margin. Each service center will process the power of attorney
for inclusion in their power of attorney files.
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