IRS Audit- Power of Attorney

[coleboy]

One of my clients is going through an IRS audit and is getting frustrated. We have been supplying her with everything but she now wants us to take over speaking with the auditor. Years ago, I would complete the Form 2848 as an unenrolled return preparer and using my CAF number. Looking at the 2848 now, it appears that I can no longer do this? Do I need to apply for a PTIN?

Am I no longer allowed to speak with the auditor at the client's request?

Any advice would be appreciated.

[Trisports]

I believe the only way you can talk to the IRS is if you are an ERPA  - enrolled agent with the IRS  - unless, you are an attorney.

[justanotheradmin]

Correct - You have to fall into one of the categories in order to be an authorized person on the Form 2848. If I recall, there are 10 or 11 categories, things like CPA, employee of the employer, attorney, actuary, Enrolled Agent, ERPA, etc. 

Applying for a PTIN is not sufficient. 

[C. B. Zeller]

You should call the IRS auditor and explain the situation. They should be able to advise you how to proceed. You might need a letter from the sponsor stating that you prepared the Form 5500 for the year under inspection, but you should be able to represent the plan as an unenrolled return preparer.

[Susan P - CPA]

As an unenrolled return preparer you can be granted Power of Attorney as long as you prepared and signed the return, have a valid PTIN and have the required Annual Filing Season Program Record of Completion.

[Larry Starr]

Sorry, but you are very limited. But make sure to read my note at the end of this quoted info

Read this: https://www.irs.gov/tax-professionals/understanding-tax-return-preparer-credentials-and-qualifications

LIMITED REPRESENTATION RIGHTS: Some preparers without one of the above credentials (CPA, EA, ATTY) have limited practice rights. They may only represent clients whose returns they prepared and signed, but only before revenue agents, customer service representatives, and similar IRS employees, including the Taxpayer Advocate Service. They cannot represent clients whose returns they did not prepare and they cannot represent clients regarding appeals or collection issues even if they did prepare the return in question. Tax return preparers with limited representation rights include:

Annual Filing Season Program Participants – This voluntary program recognizes the efforts of return preparers who are generally not attorneys, certified public accountants, or enrolled agents. It was designed to encourage education and filing season readiness. The IRS issues an Annual Filing Season Program Record of Completion to return preparers who obtain a certain number of continuing education hours in preparation for a specific tax year.

Beginning with returns filed after Dec. 31, 2015, only Annual Filing Season Program participants have limited practice rights. Learn more about this program.

PTIN Holders – Tax return preparers who have an active preparer tax identification number, but no professional credentials and do not participate in the Annual Filing Season Program, are authorized to prepare tax returns. Beginning January 1, 2016, this is the only authority they have. They have no authority to represent clients before the IRS (except regarding returns they prepared and filed December 31, 2015, and prior).

NOTE: Now, read this carefully: you didn't tell us what they are auditing.  Was the initial audit letter with regard to a 5500?  If not, you most likely cannot represent the client. They can say that they are not auditing the 5500 you prepared, they are auditing the plan.  You cannot represent the client for a general audit, only for the return you prepared.  Anything outside of the return, you have no authority about.  And if they were auditing the 5500 but it has now gone beyond that form, they can also argue that you cannot represent the client with regard to the issues being raised.  They can allow you to provide information, but they won't discuss it with you or correspond with you regarding that info if they don't recognize your authority.

The IRS has gotten much more sticky on making sure those they work with have the proper authority.  Good luck.

Larry.

[Bird]

I agree that you can't "represent" the client - e.g. negotiate. But...

16 hours ago, Larry Starr said:

They can allow you to provide information

...and sometimes that is good enough.  If your client is frustrated by being a go-between, it might satisfy everyone to just have the IRS ask you for it directly.  Anything deeper than that, you need to be one of the authorized categories.