Financial Glossary
Form 2848 (Power of Attorney and Declaration of Representative)
Form 2848, Power of Attorney and Declaration of Representative, is the IRS form that authorizes a qualified individual such as a CPA, attorney, or enrolled agent to represent a taxpayer before the IRS. It grants the representative authority to receive confidential tax information, communicate with the IRS, and act on specified tax matters and years. The taxpayer defines the scope, including which forms and periods the authorization covers.
Problem & Application
When a business faces an audit, notice, or collection issue, Form 2848 lets a professional step in and deal with the IRS directly instead of the owner fielding every letter and call. For owner-operators juggling multiple entities, it concentrates IRS correspondence with the person best equipped to respond. The authorization is limited to what you specify, so it does not hand over blanket control of your finances.
In Short
Form 2848 is the mechanism for putting a qualified representative between you and the IRS on defined matters. Scope it carefully to the periods and issues you actually want covered.