Representation before the IRS · Power of Attorney

Distinctions between power of attorney (Form 2848) and tax information authorization (Form 8821)

One form grants access; the other grants authority. Form 8821 lets a designee see and receive confidential tax information. Form 2848 lets a representative act. Almost every examinable distinction between them follows from that one line, including who may be named, what the holder may do, and how each is revoked.

The rule

What Form 8821 does. It authorises any individual, corporation, firm, organization, or partnership the taxpayer designates to inspect and/or receive confidential information verbally or in writing for the type of tax and the years or periods listed. It is also used to delete or revoke prior tax information authorizations. A taxpayer may file their own tax information authorization without using Form 8821, provided it includes all the information the form requests.

What Form 8821 does not do. The instructions are explicit. Form 8821 does not authorise the designee:

• to speak on the taxpayer’s behalf;
• to execute a request to allow disclosure of return or return information to another third party;
• to advocate the taxpayer’s position regarding federal tax laws;
• to execute waivers, consents, or closing agreements; or
• to represent the taxpayer in any other manner before the IRS.

Two further limits sit alongside: the designee may not substitute another party as the taxpayer’s authorised designee, and a designee is never allowed to endorse or negotiate a taxpayer’s refund check or receive a refund by direct deposit.

What Form 2848 does. It authorises an individual to represent the taxpayer before the IRS. Because representation is practice before the IRS, the representative must be eligible to practise — the declaration in Part II is where that eligibility is claimed — and Reg. § 601.502 defines who is a recognized representative. Under a Form 2848 the representative may, subject to what the taxpayer authorises on the form, perform the acts described in Reg. § 601.504(a), including signing consents extending the assessment period, waivers of restrictions on assessment, and closing agreements.

The 120-day rule (Instructions for Form 8821, When To File). Where Form 8821 is submitted to authorise disclosure for a purpose other than addressing or resolving a tax matter with the IRS — the instructions’ example is income verification required by a lender — the IRS must receive it within 120 days of the taxpayer’s signature date. That requirement does not apply to a Form 8821 submitted to authorise disclosure for assistance with a tax matter.

Revocation. Each form revokes its own kind by default, and neither revokes the other:

• Filing a Form 8821 automatically revokes all prior tax information authorizations on file unless the taxpayer attaches a copy of the one to be retained and checks the line 5 box. Where the line 4 specific-use box is checked, line 5 is skipped.
• Filing a Form 2848 the IRS records on the CAF generally revokes an earlier power of attorney previously recorded for the same matter; a specific-use or unrecorded Form 2848 revokes only an earlier one on file with the same office for the same matters. Checking the line 6 box and attaching a copy preserves the earlier power.
• Filing a Form 2848 does not revoke any Form 8821 in effect.

To revoke a Form 8821 without filing a new one, the taxpayer writes “REVOKE” across the top with a current signature and date under the original signature; with no copy, a signed notification stating that the designee’s authority is revoked, naming each designee and listing the tax matters and periods — or “revoke all years/periods” for a complete revocation.

Current figures

How it works in practice

Start with who may be named — the cleanest divide. A Form 2848 names an individual eligible to practise: an attorney, CPA, enrolled agent, enrolled actuary, enrolled retirement plan agent, or one of the limited categories the declaration recognises. A Form 8821 may name anyone, including an entity — a bank, a payroll firm, an unenrolled bookkeeper, a family member. That is possible because a designee does nothing but receive information, and IRC § 6103(c) is the consent that permits it.

The five prohibitions are the examinable list. A designee may not speak for the taxpayer, may not consent to onward disclosure to a further third party, may not advocate, may not execute waivers, consents or closing agreements, and may not represent in any other manner. Two of those are worth pausing on. The onward-disclosure limit means a designee cannot authorise the IRS to release the information to someone else — the taxpayer’s consent under § 6103(c) runs to the named designee, not through them. And “execute waivers, consents, closing agreements” is the mirror image of what a Form 2848 representative is authorised to do under Reg. § 601.504(a); a question that lists those acts is testing which form is needed.

The 120-day rule turns on purpose, not on the designee. Where the authorisation exists to get information out to a lender, a court, or anyone else for a non-tax purpose, the IRS must receive it within 120 days of the taxpayer’s signature. Where it exists to help with an IRS matter, there is no such window. The same designee, the same tax years, and the same form can fall on either side of it depending on why it was signed.

Revocation runs in one direction only. A new Form 8821 wipes out prior tax information authorizations unless the taxpayer preserves them; a new Form 2848 wipes out prior powers of attorney on the terms described above. Neither touches the other kind. A taxpayer with both on file who files a fresh Form 2848 still has the Form 8821 designee receiving copies — which is a routine surprise and worth checking when taking over a file.

The overlap is narrow. Both are recorded on the CAF, both carry CAF numbers, and both cause copies of computer-generated notices to be sent where the taxpayer so authorises (Reg. § 601.506(d)(1)). What differs is everything the holder may then do.

Where a fiduciary is involved, neither form is the right one first. The Form 8821 instructions point to Form 56: a fiduciary — trustee, executor, administrator, receiver or guardian — stands in the position of the taxpayer and acts as the taxpayer, not as a representative. Once that relationship is noticed, the fiduciary may file a power of attorney naming a representative, and because the fiduciary stands in the taxpayer’s shoes, the fiduciary signs it on behalf of the person or entity.

How this has changed

Both sets of instructions were last reviewed on 30 April 2026, and the Form 2848 instructions carry a September 2021 revision date.

The change most worth knowing is in the Form 8821 “What’s New,” which now carries two notification paragraphs — one to the taxpayer, one to the designated recipient — both resting on IRC § 6103(c). They state that § 6103(c) limits disclosure and use of return information provided pursuant to consent and holds the recipient subject to penalties, brought by private right of action, for any unauthorized access, other use, or redisclosure without the taxpayer’s express permission or request. That reframes the designee’s position: the form is the boundary of an enforceable duty, and the route named is a private action by the taxpayer, not only an IRS sanction.

The second change is the submission channel. The Form 2848 instructions now open by directing practitioners to the all-digital Tax Pro Account, where “most requests record immediately to the Centralized Authorization File,” and Form 8821 has a parallel online route. Both draw a line at signatures: a form bearing an electronic or digitized signature may only be submitted online, and a Form 8821 filed by mail or fax must be handwritten.

Neither change touches the substantive divide, which has been stable: access versus authority.

Exam focus

The single distinction to know is that Form 8821 grants access only and Form 2848 grants authority to represent. Everything else follows.

Know that Form 8821 may name any individual or entity, while Form 2848 must name an individual eligible to practise.

Know the five things a Form 8821 designee may not do: speak for the taxpayer, consent to onward disclosure, advocate a position, execute waivers, consents or closing agreements, or otherwise represent — plus the two absolutes, no substitution and nothing to do with the refund.

Know that neither form revokes the other, that a new Form 8821 revokes prior tax information authorizations unless retained, and that the 120-day window applies only to non-tax-purpose authorisations.

Know that a fiduciary files Form 56, stands in the taxpayer’s position rather than representing, and signs any power of attorney on the taxpayer’s behalf.

Check yourself

1. Which may be named on a Form 8821 but not on a Form 2848? (A) An enrolled agent (B) A certified public accountant (C) A partnership (D) An attorney Answer: C. Form 8821 authorises any individual, corporation, firm, organization or partnership; Form 2848 names an individual eligible to practise before the IRS.

2. A Form 8821 designee wants to sign a waiver of restrictions on assessment to close an examination. May he? (A) Yes, if the taxpayer agrees orally (B) Yes, for years listed on the form (C) No, Form 8821 does not authorise executing waivers, consents or closing agreements (D) Yes, if he also holds a CAF number Answer: C. The Form 8821 instructions exclude executing waivers, consents and closing agreements, along with speaking for the taxpayer, advocating a position, and representing in any other manner.

3. A taxpayer files a new Form 2848. What happens to a Form 8821 already on file? (A) It is revoked automatically (B) It remains in effect (C) It is suspended until the new power of attorney is recorded (D) It is converted into a power of attorney Answer: B. Filing a Form 2848 does not revoke a Form 8821; the taxpayer must revoke that authorisation separately.

4. Within what period must the IRS receive a Form 8821 authorising disclosure to a lender for income verification? (A) 30 days from the signature date (B) 60 days from the signature date (C) 120 days from the signature date (D) No deadline applies Answer: C. The 120-day rule applies where the purpose is other than addressing or resolving a tax matter with the IRS; it does not apply where the purpose is assistance with an IRS matter.

5. May a Form 8821 designee substitute someone else as the taxpayer’s designee? (A) Yes, with the taxpayer’s oral consent (B) Yes, if the substitute is also named on the form (C) No, the designee may never substitute another party (D) Yes, on the same terms as a Form 2848 representative Answer: C. The Form 8821 instructions state it without qualification. Substitution under a Form 2848 is possible but only where the power of attorney specifically permits it.