IRS Representation

Power of Attorney and Declaration of Representative authorizes an individual to represent a taxpayer before the IRS and receive/trade confidential tax information

Tax Information Authorization allows receiving confidential tax information but does NOT authorize representation before the IRS or executing closing agreements

3 years from the later of the filing date or the due date of the return

6 years

Fraud, willful evasion, or no return filed — indefinite (no limit)

Correspondence audit — by mail for simple issues Office audit — at an IRS office Field audit — at taxpayer's place of business, most comprehensive

Preliminary report of proposed adjustments after an audit. Taxpayer has 30 days to agree and sign Form 870 or file an appeal. Failure to respond leads to the 90-day letter (Notice of Deficiency).

IRS formal determination of additional tax. Taxpayer has 90 days (150 days if outside US) to file a petition in US Tax Court. No payment required to enter Tax Court.

Tax Court — no need to pay tax first, no jury District Court — must pay tax first and sue for refund, jury trial available Court of Federal Claims — must pay first, no jury, sits in Washington DC

Preparer Tax Identification Number required for anyone who prepares or assists in preparing all or substantially all of a federal tax return for compensation. Renewed annually.

IRS e-file Signature Authorization taxpayer authorizes the ERO to e-file. Must be signed before transmission and retained for 3 years.

An independent IRS function that resolves disputes without litigation. Appeals Officers settle based on hazards of litigation. New issues cannot typically be raised.

Internal Revenue Code Treasury regulations controlling federal court decisions IRS publications are not binding precedent Internal Revenue Manual is not binding precedent

binding on IRS for the requesting taxpayer only if facts were fully and accurately stated only if transaction was carried out as described may not be used or cited as precedent by other taxpayers

enrolled agents attorneys certified public accountants

PSI Services July 1, 2026 through February 28, 2027

Form 2848 authorizes representation before IRS Form 2848 may authorize acts specified by the taxpayer Form 8821 authorizes inspection or receipt of tax information Form 8821 does not authorize representation

returns and return information are confidential IRS disclosure requires statutory authorization taxpayer consent may authorize specified disclosure

Form 8275-R for a position contrary to a regulation Form 8275 for other disclosed positions

unreasonable position: greater of $1,000 or 50% of preparer-derived income willful or reckless conduct: greater of $5,000 or 75% of preparer-derived income

3 years generally 6 years for omission exceeding 25% of gross income no limitation for a false or fraudulent return no limitation when no return is filed

notice at least 45 days before the first contact notice specifies a contact period not longer than 1 year

correspondence examination office examination field examination

90 days generally 150 days if the notice is addressed to a person outside the United States

U.S. Tax Court does not require advance payment U.S. District Court requires payment first U.S. Court of Federal Claims requires payment first

11 or more covered returns in a calendar year returns aggregated across the firm all covered returns prepared by firm members must be e-filed unless an exception applies

notify taxpayer within 24 hours provide rejection code and explanation correct and retransmit by the fifth calendar day after the return due date if the original transmission was timely

3 years from the later of the return due date or IRS acceptance date not submitted unless IRS requests it

create a written security plan implement the plan identify and assess risks use safeguards appropriate to the firm's size and complexity monitor service providers review and update the plan as risks and operations change

as soon as possible no later than the next business day after confirmation

6 digits valid for one calendar year new IP PIN issued each year available to any taxpayer who can verify identity required on an e-file after enrollment

only in limited circumstances permitted by regulation examples include disease or injury, continuous absence from the United States for at least 60 days before the filing deadline, or specific IRS permission Form 2848 must specifically authorize signing

only as authorized by the Internal Revenue Code or regulations or with knowing and voluntary taxpayer consent that satisfies regulatory form and timing rules unauthorized disclosure or use can trigger criminal and civil penalties

3 years after the close of the return period retain either a completed copy of the return or claim or a list containing the required taxpayer and return information make it available for IRS inspection on request

partnership-related items are generally determined at the partnership level a partnership representative acts with sole authority for the partnership default imputed underpayment is generally assessed and collected from the partnership eligible partnerships may elect out or may make a push-out election when requirements are met

after an audit assessment when the taxpayer did not appear or did not submit information the taxpayer has new information that could change the assessment the liability generally remains unpaid reconsideration is an administrative process, not a substitute for a timely appeal or Tax Court petition

later of 3 years from filing the return or 2 years from paying the tax if no return was filed, generally 2 years from payment the amount recoverable may be limited by the applicable lookback period

an ERO originates electronic submission of a return after receiving it from the taxpayer or preparer a transmitter sends electronic return data directly to IRS one provider may perform both roles if authorized