The IRS has once again revised Form 2848 – Power of Attorney and Declaration of Representative. There are many changes to the new form, the most apparent being in Section 1 – no longer will we list a taxpayer and spouse on the same form. Each taxpayer will complete, sign & date a separate Form 2848. In discussions with my peers, it has been suggested this change was in line with innocent spouse provisions.

A second change on the form is in Section 2 – under the representative name and address is a checkbox to mark if you wish to be sent ‘notices and communications;’ but the most striking changes are in Section 5: Acts Authorized. The new form removes a representative’s ability to receive a refund check on behalf of the taxpayer; the following statement has been added to Section 5: “The representative(s) . . . is (are) not authorized to receive or negotiate any amounts paid to the client in connection with this representation (including refunds by either electronic means or paper checks).” This change may be in answer to the high amount of fraud by disreputable tax preparers in receiving and embezzling refunds issued to taxpayers.

Another change to Section 5: Acts Authorized was the addition of the following statement: “Additionally, unless the appropriate box(es) below are checked, the representative(s) are not authorized to substitute another representative or add additional representatives, to sign certain returns, or to execute a request for disclosure of tax returns or return information to a third party.” This is good news for tax professionals; this will permit third party disclosures; effective with the release of the new revision, if a valid Power of Attorney is signed by the taxpayer(s) listed on the return AND the correct box is checked, disclosure may be made.

Finally, the new form added the IRS designation of Registered Tax Return Preparer (RTRP) and has combined designations for student attorneys and certified public accountants in the preparer signature section.

The majority of tax professionals utilize their tax software to complete these forms; but for those of you who complete them by hand please take the time now to throw out any old stock of Form 2848 you may have in your office. The IRS will disregard any Form 2848 filed with them that is not on the October 2011 revision.

For more information refer to Form 2848 instructions at www.irs.gov