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There are times when taxpayers may ask accountants, attorneys or enrolled agents to assist with tax problems or to represent them before the IRS. To authorize a party as power of attorney (POA), the representative may submit a Form 2848, Power of Attorney and Declaration of Representative. See IRM 21.3.7.3, Third Party Authorization Research.

A taxpayer can appoint someone to receive their tax account information by signing Form 8821, Tax Information Authorization (TIA). This allows the authorized party to receive tax account information, but does not allow them to advocate for the taxpayer or argue examination or collection issues. Unenrolled agents have limited power and are not allowed to argue tax-related issues.

Treas. Reg. §301–6103(c)-IT(b) authorizes the IRS to accept non-written requests or consents (Oral Disclosure Consents) authorizing the disclosure of return information to third parties to assist taxpayers in resolving their federal tax matters. Only the taxpayer or his/her authorized representative, who has been previously given the authority by a Power of Attorney to appoint other designees, can give an Oral Disclosure Consent. Oral Disclosure Consents may be taken from taxpayers, or his/her authorized representative, who have open account issues or to whom some type of notice has been issued from IRS. The disclosure of return information must be limited to the information covered in the verbal consent and disclosure can only be made to third parties helping taxpayers resolve a Federal tax matter. The Oral Disclosure Consent expires when the account issue is closed.

To record an Oral Disclosure Consent for a taxpayer inquiry where no TAS case is generated, TAS employees will follow the IRM 21 procedures. Refer to 21.1.3.3.2, Oral Disclosure Consent/Oral TIA (Paperless F8821) for requirements and history item format using CC ACTON.

To record an Oral Disclosure Consent for TAS cases, TAS employees will record authorizations on TAMIS instead of IDRS.

Effective January 2, 2002, the CAF Units will process requests for Oral Tax Information Authorization (Paperless Form 8821) in the CAF database. In order to request an oral Tax Information Authorization request the taxpayer must have the assigned CAF number to the third party, or else the Form 8821 must be submitted in writing. The paperless Forms 8821 allow the appointee to contact IRS by telephone and to receive notices and transcripts, but only if the data requested is needed to resolve a Federal tax matter. They do not allow the appointee to receive refunds for the taxpayer, not to advocate for the taxpayer.

To record an Oral Disclosure Consent for a taxpayer inquiry where no TAS case is generated, TAS employees will follow the IRM 21 procedures. Refer to 21.1.3.3.2, Oral Disclosure Consent/Oral TIA (Paperless F8821) for requirements and history item format using CC ACTON.

To record an Oral Disclosure Consent for TAS cases, TAS employees will record authorizations on TAMIS instead of IDRS.

A taxpayer can designate a third party contact by checking the box on their tax return. This designee is known as a the Third Party Designee. The Third Party Designee is authorized to receive tax information relating to return processing issues (i.e. notices), refund or payment; respond to missing information on the return and discuss math errors. Refer to 21.1.3.3.1, Third Party Designee Authentication for information on authorization and disclosure.

Refer to either Publication 4019, Third Party Authorizations (Job Aid), or to IRM 21.3.10.2.6, Locating Information for Different Types of Authorization, for references concerning different types of authorization (Website: http://serp.enterprise.irs.gov/databases/irm.dr/current/21.dr/21.3.dr/21.3.10.2.6.htm).

You can send original, photocopied, or faxed copies of Forms 2848 or 8821 to the CAF unit to be processed. If a POA/TIA is received that is not attached to any return or document, route it to the appropriate centralized CAF unit, see IRM 21.3.7. Document the date the Form 2848 or 8821 was sent to the CAF unit in the "Date Form 2548/8821 sent to CAF" field in the TAMIS POA Screen. If the authorization is attached to correspondence, review the correspondence to determine if other requests are involved. If other requests are involved:

Do not detach POAs/TIAs filed for specific issues from the related document or send them to the CAF function, unless the document includes authorization for release of return information in addition to the specific issue. In this case, a copy of the POA/TIA should be sent to the appropriate centralized CAF unit to input the return portion on the CAF system.

Examples of specific issues include, but are not limited, to the following:

If you receive a "General Power of Attorney" or "Durable Power of Attorney" which does not contain sufficient authorization to process on CAF, retain it in the case file or keep it attached to the related return. If it is attached to a completed Form 2848, both forms should be sent to the CAF function for processing.

Documentation should be included in the case history as to whether the forms were sent to the campus for processing. If not, documentation should list the reasons for not sending the forms for processing.

Congressional offices provide their own authorization forms completed by their constituents and will forward the authorization forms to TAS or IRS office. The IRS accepts these forms as tax information authorizations. The IRS also accepts correspondence addressed and sent to congressional offices as authorization for releasing tax information if the correspondence contains ALL of the following information:

Ensure that any valid power of attorney or written authorization on file that provides for sending correspondence or copies of correspondence to the representative is honored.

The Restructuring and Reform Act of 1998, §1203(b)(7), deals with the willful misuse of provisions of §6103 of the Internal Revenue Code of 1986. This provision deals with the withholding of information from a congressional inquiry. Congressional inquiries are mandatory authorized disclosures and the willful disregard of statutory provisions for disclosing such information would subject the employee to disciplinary action under the provisions of RRA 98, §1203. The Director, Legislative Affairs should be informed immediately if any request for tax information from a congressional committee.

Internal Revenue Code (IRC) Section 6103(f)(1) provides for the disclosure of tax information upon receipt of a written request from the Chairman of the Committee on Ways and Means of the House of Representatives, the Chairman of the Committee on Finance of the Senate, or the Chairman of the Joint Committee on Taxation. Pursuant to the IRC Sections 6103(f)(1) and (f)(4), the Chairman of the Committee of Ways and Means has authorized the Chairman of the Subcommittee on Oversight to request and obtain tax information relating to certain broad categories. If any return or return information can be associated with or otherwise identify, directly or indirectly, a particular taxpayer, the committee must be sitting in closed executive session or have the taxpayer's written consent. However, this is contingent on the specific verbiage in Ways and Means authorizing letter.

Only officials with authority under Delegation Order 156, as revised, may approve disclosure to be made to congressional committees under IRC §6103.

IRM 11.3, Disclosure of Official Information, covers disclosure guidelines for Committees of Congress, Congressional committees, such as grand jury and informant information, and sets out record keeping requirements when making disclosures to Congressional committees.

Section 3417 of RRA98 revised Internal Revenue Code §7602(c) to require that IRS employees provide taxpayers with notice of contact of third parties. Under this section you must provide taxpayers with prior notification that third parties may be contacted during the determination or collection of that specific taxpayer's federal tax liability. This section also requires you provide a list, periodically and upon taxpayer request, of third parties that have been contacted. This is effective for all third party contacts made after January 18, 1999.

When you receive a criteria 1–4 hardship request there are times when you must contact a bank or landlord to verify the facts of the taxpayer's circumstances. The taxpayer may be requesting immediate assistance, such as releasing a levy or expediting a refund. Contacts with third parties, even in the instances of hardship determination, are considered to be in connection with the determination or collection of a tax liability and, as such, are §7602(c) contacts.

If the taxpayer has signed the Form 911, check to see if the revision date is March 2000 or later. This form has a paragraph which provides taxpayer authorization for making third party contacts and if signed, allows TAS employees to contact third parties without having to comply with the notice and record keeping requirements of Section 7602(c).

If no Form 911 is signed and the taxpayer authorizes specific third party contact(s), the best practice is to complete a Form 12180 (Exhibit 13.1.10–1) and have it signed by the taxpayer. This form should remain with the case file. Where the taxpayer is not in direct contact with you, it is appropriate for the taxpayer to Fax a signed copy of the Form 12180 to you and remain in the case file.

If the taxpayer gives Oral Authorization , IRS employees are not required to complete a Form 12180, in all cases. See IRM 13.1.7.3.3.2, IRC §7602(c) Oral Authorization for §7602(c) Third Party Contact for more information on this topic.

You should document your case file with the date the taxpayer provided the authorization. Assistors can also meet the requirements of this law by utilizing 3-way calling with the taxpayer on the line.

If the taxpayer does not authorize contact, you should ensure the taxpayer receives a reasonable notice via Letter 3164J, Notification of Potential Third Party Contact that third parties may be contacted and should record contacts made to third parties. Allow 10 days after mailing Letter 3164J before contacting any third party, then file Form 12175 with your third party contact coordinator.