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 permit them to do so, according to a news release.
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.
Low-Income Taxpayer Clinics are independent of the Internal Revenue Service and the Taxpayer Advocate Service. LITCs represent individuals with income below a certain level who need to resolve tax problems with the IRS. These clinics can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and court. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages. Services are free or may cost a small fee.
- Power of Attorney Information
- Disclosure Authorizations
- Publication 4134, Low Income Taxpayer Clinic List
- Practice Before the IRS and Power of Attorney
- Power of Attorney and Declaration of Representative
- Tax Information Authorization