Filing Taxes for Another Person: Is It Possible?
Are you interested in helping a friend or family member navigate an IRS tax audit? It's important to understand the requirements and responsibilities involved in becoming an authorized representative.
Firstly, the taxpayer must complete and submit Form 2848, Power of Attorney and Declaration of Representative, to the IRS. This form explicitly identifies and authorizes the representative(s) and defines their scope of authority, such as handling audit matters.
Representatives can include tax attorneys, Certified Public Accountants (CPAs), Enrolled Agents (EAs), or even family members, as authorized by the taxpayer.
Enrolled Agents, who are federally authorized and licensed by the IRS specifically to represent taxpayers on tax matters, must pass a rigorous examination and complete continuing education to maintain their status. They hold a limited client confidentiality privilege in audit and collection cases and are uniquely licensed by the IRS for this practice.
Other professionals such as attorneys and CPAs can also represent taxpayers, but they are licensed by state authorities rather than the IRS directly.
It's crucial to note that there is no official IRS "authorized representative" certification or credential apart from the designation through Form 2848 and any applicable professional licenses.
The authorized representative must follow IRS procedures and laws and act within the granted authority. The taxpayer’s consent and properly filed paperwork are essential for valid representation.
Unlike employers designating authorized representatives to complete Form I-9 verification, IRS audit representation requires formal authorization by the taxpayer via Power of Attorney and usually professional qualifications to competently represent on tax law matters.
In summary, the taxpayer controls who acts as an authorized representative in an IRS audit by filing Form 2848, and qualified representatives such as Enrolled Agents are held to additional professional standards. It's essential to exercise caution when assisting a friend with their tax return, as potential complications with the IRS may arise.
References: 1. Ohlheiser, A. (2015). 60% of Americans hire professionals to prepare and file their tax returns. The Washington Post. [Online] Available at: https://www.washingtonpost.com/news/wonk/wp/2015/03/12/60-of-americans-hire-professionals-to-prepare-and-file-their-tax-returns/ 2. Erb, L. (2013). The federal tax code contains nearly 4 million words. Forbes. [Online] Available at: https://www.forbes.com/sites/larryedelman/2013/01/03/the-federal-tax-code-contains-nearly-4-million-words/?sh=36526d9a3c3e 3. IRS. (n.d.). Power of Attorney and Declaration of Representative (Form 2848). Internal Revenue Service. [Online] Available at: https://www.irs.gov/forms-pubs/about-form-2848 4. IRS. (n.d.). Enrolled Agents. Internal Revenue Service. [Online] Available at: https://www.irs.gov/taxtopics/tc361 5. TurboTax. (n.d.). If no executor or estate administrator is specified, who is responsible for filing the deceased person's tax return? TurboTax. [Online] Available at: https://ttlc.intuit.com/questions/3414775-if-no-executor-or-estate-administrator-is-specified-who-is-responsible-for-filing-the-deceased-persons-tax-return
- In pursuit of helping a friend effectively manage their tax affairs, it may be beneficial for them to consider hiring a professional with expertise in personal-finance matters, such as a Certified Public Accountant (CPA) or an Enrolled Agent (EA), who are authorized by the IRS to represent taxpayers.
- To ensure the management of audit matters is handled proficiently, it's prudent for friends or family members to understand that despite their personal relationship, the IRS expects authorized representatives to have professional qualifications and follow IRS procedures and laws, withForm 2848 serving as the formal authorization granting such representation.
