Any individual other than an attorney, CPA, enrolled agent or enrolled actuary who prepares a return and signs it as the return preparer is an "unenrolled return preparer" . Unenrolled return preparers are limited in their practice before the IRS (see Rev. Proc. 81-38 and Publication 470):

Because of their special relationship with a taxpayer, the following unenrolled individuals can represent the specified taxpayers before the IRS without having actually prepared the tax return in question. They must provide satisfactory identification and documented authority (e.g., Form 2848) to represent the taxpayer:

A Tax Matters Person (TMP) may appoint an attorney-in-fact to represent the TEFRA entity partners before the Service and to perform various acts on their behalf. It is recommend; however, that the Service obtain the signature of the TMP for the execution of certain legally significant documents. The term legally significant documents includes, but is not limited to:

Other situations in which it is necessary to deal directly with the duly designated TMP rather than the POA include, but are not limited to mailing of required notices, such as NBAP or FPAA. However, a copy of the notice will also be mailed to the POA, though it should not be sent certified mail.

Form 2848 should be completed as follows:

The POA for a TEFRA entity becomes null and void upon the death of the duly designated TMP. A new TMP must be designated and a new POA executed.

A POA for a TEFRA investor must specifically identify the TEFRA entity by name.

Correspondence may only be sent to a TEFRA investor's POA if the Form 2848 meets the requirements of Treas. Reg. §301.6223(c)-1(e) [26 CFR 301.6223(c)-1], which states that the POA must specifically state that the acts authorized by the POA include representation for purposes of subchapter C of chapter 63 of the Internal Revenue Code and identify the entity by name.

No TEFRA letters (i.e., 60-day letter, FPAA) may be issued to a TEFRA investor's POA unless the TEFRA entity issue is specifically stated on the POA form. The partnership control system (PCS) will not generate any PCS letters to anyone listed on the CAF. No other system should be used to generate any PCS letters to a taxpayer's POA unless the specific TEFRA issue being examined is specifically stated on the Form 2848.

A representative can substitute a representative or delegate authority to another representative if the taxpayer specifies this on Line 5 of Form 2848.

26 CFR 601.505 provides procedures for a taxpayer or a representative in revoking, changing, substituting or delegating a representative.

The Form 2848 should be signed by each of the representatives listed on the form.

If more than one representative is named, but only one has signed the declaration, the power of attorney is valid only for the signing representative.

The personal representative of a decedent's estate may appoint a different representative. Form 56, Notice of Fiduciary Relationship, and a copy of the letters of administration, trust agreement, letters testamentary or court order must be attached to the POA whenever the signature is that of an administrator, executor, trustee, or other fiduciary.

If a preparer, CPA, attorney, or enrolled agent calls to make an appointment or to discuss a case, the examiner should NOT have any discussions with the representative about the examination, including scheduling appointments, to avoid any possibility of unauthorized disclosures. To facilitate the process, examiners should remind representatives that POAs can be sent by FAX.

If the taxpayer's representative calls to obtain taxpayer account or return information, the examiner must ensure that he/she is, in fact, speaking with the representative designated on the POA by asking for the taxpayer's name and TIN, and representative's name and identification number.

The CAF system should also be reviewed to determine the extent of the authority of the third party requester to receive information.

If the scope of the examination is expanded to include additional tax periods, the taxpayer should be notified of the additional tax periods. Generally the taxpayer should be given time to secure a POA to cover the additional periods before any examination action is taken on those periods

Under Rev. Proc. 68-29, the taxpayer also has the right in cases involving issues or controversies to have any person who has knowledge of pertinent facts accompany him or his duly authorized representative to conferences.

A tax matters partner or person is not required to file a power of attorney to perform various acts on behalf of the partnership or subchapter S corporation.

A fiduciary (trustee, executor, administrator, receiver or guardian) of a taxpayer is deemed to be the taxpayer and thus, is not required to file a power of attorney. However, a fiduciary must file Form 56, Notice Concerning Fiduciary Relationship, to notify the IRS of the fiduciary relationship.

The IRS is allowed under Treas. Reg. §301.6103(c)-1(c)(2), [26 CFR 301.6103(c)-1] to discuss with a third party designee, tax return or return information after receiving a taxpayer's nonwritten (oral) consent.

These regulations also clarify that the taxpayer can verbally approve IRS disclosures to someone who accompanies the taxpayer at in-person meetings with the IRS, or someone participating in a telephone conversation.

Examiners must confirm the identity of the taxpayer, the identity of the designee and the date, nature and extent of the assistance requested. The designee might be a friend, relative, witness or translator.

Details of the oral consent should be recorded on the case history sheet. Verbal requests or consent for disclosure DO NOT take the place of a POA to represent the taxpayer before the IRS.

A taxpayer can authorize the IRS to discuss a return with a friend, family member or any other person if the "Yes" box in the third party designee area of the tax return was checked and the required information was provided.

The authorization allows the designee to give the IRS information missing from the taxpayer’s return, call the IRS for information about the processing of the taxpayer’s return or the status of a refund or payment, and respond to IRS notices that the taxpayer has shared with the designee relating to math errors, offsets and return preparation.

The designee cannot receive refund checks, bind the taxpayer to anything, or otherwise represent the taxpayer before the IRS.

The authorization cannot be revoked, but will automatically end no later than the due date (without regard to extensions) for filing the subsequent tax year’s return.