SEE - Special Enrollment Exam Quiz: Power Of Attorney And Authorization
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Power Of Attorney And AuthorizationQuestion 1 of 15

A client's 2023 Form 1040 was prepared and signed by Renata, an unenrolled return preparer who holds a valid PTIN and a current Annual Filing Season Program Record of Completion. In 2025, the IRS selected the return for examination, and the client received an examination notice. At intake, the client tells you that she has already filed Form 8821 naming Renata as her designee, and she asks whether Renata can represent her at the examination.

Which of the following is correct regarding Renata's authority?

Renata may represent the client at the examination because she prepared the return, holds a valid PTIN and Record of Completion, and Form 8821 is the required written authorization for an unenrolled preparer's limited practice.
Renata may not represent the client because an unenrolled return preparer who is not an enrolled agent, CPA, or attorney is never authorized to practice before the IRS, regardless of the Annual Filing Season Program.
Renata may attend the examination and speak on the client's behalf without filing any additional IRS form because she signed the return, but she may not sign documents for the client during the examination.
Renata may represent the client only if the client files a Form 2848 naming Renata; Form 8821 authorizes disclosure of tax information to her but does not authorize her to represent the client at the examination.
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SEE - Special Enrollment Exam Quiz

SEE - Special Enrollment Exam Quiz: Power Of Attorney And Authorization

Practice Power Of Attorney And Authorization in SEE - Special Enrollment Exam with focused quiz questions that help you check what you know, review explanations, and build confidence with test-style prompts.

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This quiz focuses on Power Of Attorney And Authorization, giving you a quick way to practice the rules, question types, and explanations that matter most for SEE - Special Enrollment Exam.

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Question 1

A client's 2023 Form 1040 was prepared and signed by Renata, an unenrolled return preparer who holds a valid PTIN and a current Annual Filing Season Program Record of Completion. In 2025, the IRS selected the return for examination, and the client received an examination notice. At intake, the client tells you that she has already filed Form 8821 naming Renata as her designee, and she asks whether Renata can represent her at the examination.

Which of the following is correct regarding Renata's authority?

  1. Renata may represent the client at the examination because she prepared the return, holds a valid PTIN and Record of Completion, and Form 8821 is the required written authorization for an unenrolled preparer's limited practice.
  2. Renata may not represent the client because an unenrolled return preparer who is not an enrolled agent, CPA, or attorney is never authorized to practice before the IRS, regardless of the Annual Filing Season Program.
  3. Renata may attend the examination and speak on the client's behalf without filing any additional IRS form because she signed the return, but she may not sign documents for the client during the examination.
  4. Renata may represent the client only if the client files a Form 2848 naming Renata; Form 8821 authorizes disclosure of tax information to her but does not authorize her to represent the client at the examination. (correct answer)
Explanation: IRC § 6103(c); Circular 230 § 10.7(c)(1)(viii); Form 2848 and Form 8821 instructions. Form 8821 is a tax information authorization: it permits the named designee to receive and inspect confidential tax information for the listed matters and periods, but it does not authorize the designee to represent the taxpayer before the IRS. Practice before the IRS, including appearing at an examination in a representative capacity, requires a written power of attorney (Form 2848) naming a person eligible to practice. Renata is eligible for limited practice because she prepared the signed return and holds a valid PTIN and a current Annual Filing Season Program Record of Completion, but the client's Form 8821 does not give her authority to act as the client's representative. Choice A misstates the effect of Form 8821, treating a disclosure authorization as the written authorization for representation. Choice B overstates the prohibition: unenrolled return preparers who meet the PTIN and Record of Completion requirements may represent taxpayers in examinations of returns they prepared. Choice C misstates the requirement: appearing at the examination and speaking on the client's behalf is practice before the IRS and requires a POA; having signed the return does not confer that right.

Question 2

Dana, an enrolled agent, holds a Form 2848 from a client that lists two matters: a collection due process hearing regarding the client's 2021 balance due and an examination of the client's 2022 Form 1040. The client becomes dissatisfied and engages a new representative, Priya. Priya files a Form 2848 with the IRS office handling the collection due process hearing, listing only the 2021 collection matter, and the IRS accepts it. The examination of the 2022 return is still pending.

Which of the following is correct regarding Dana's authority?

  1. Dana's authority over both matters terminates when Priya's Form 2848 is accepted, because filing a new power of attorney revokes all earlier powers of attorney for that taxpayer.
  2. Dana's authority over the 2021 collection matter terminates, but Dana remains authorized for the 2022 examination until that matter is resolved or the IRS receives a revocation or new Form 2848 covering it. (correct answer)
  3. Dana's authority over the 2021 collection matter continues until the IRS receives a separate written revocation from the client, because a new Form 2848 cannot revoke an earlier Form 2848 that names a different representative.
  4. Dana's authority over the 2021 collection matter terminates only when Dana files a written withdrawal, because a taxpayer may not revoke a power of attorney after the IRS has accepted it.
Explanation: Form 2848 instructions (Revocation). Filing a new Form 2848 for the same tax matter and tax period revokes an earlier Form 2848 for that same matter and period; it does not revoke authorizations for other matters or periods. Because Priya's Form 2848 lists only the 2021 collection matter, Dana's authority over that matter has ended. Dana's separate authority over the 2022 examination continues until that matter is resolved, Dana withdraws, or the IRS receives a revocation or a new Form 2848 covering the 2022 examination. Choice A overstates the rule: a new power of attorney revokes prior powers of attorney only as to the matters and periods it covers. Choice C misstates the mechanics: a separate written revocation is not required when a new Form 2848 covering the same matter and period is filed, and the revocation operates regardless of whether the new form names a different representative. Choice D confuses revocation with withdrawal: a taxpayer may revoke a power of attorney at any time, and the IRS recognizes the new power of attorney when it is filed; a representative's withdrawal is a separate act and is not required for the revocation to take effect.

Question 3

A taxpayer wants her adult daughter—who is not an attorney, CPA, enrolled agent, or other person eligible to practice before the IRS—to call the IRS about a balance due notice and to receive copies of the taxpayer's account transcripts. The daughter will not sign anything. The taxpayer is considering whether the daughter may also appear at a collection due process hearing should one become necessary.

Which of the following is correct?

  1. File Form 2848 so the daughter may both receive the transcripts and appear at any collection hearing; an unenrolled person may appear under a power of attorney.
  2. File Form 56 so the daughter may act as a fiduciary and bind the taxpayer in collection matters.
  3. File Form 8821 for the transcript access; it will not make the daughter a recognized representative for a collection due process hearing or any other IRS proceeding. (correct answer)
  4. Use the third-party designee box on a 2025 Form 1040; it authorizes the daughter to receive the transcripts and to represent the taxpayer through the due date of that return.
Explanation: Choice C is correct. Form 8821 authorizes the IRS to disclose return information to an appointee and permits the appointee to inspect and receive information, but it does not authorize representation. The daughter cannot be a recognized representative for a collection due process hearing because she is not eligible to practice before the IRS, and Form 8821 cannot change that. Choice A is wrong because Form 2848 is for authorized representatives and does not make an ineligible person eligible. Choice B is wrong because Form 56 is for fiduciaries, and the daughter is not acting in a fiduciary capacity. Choice D is wrong because the third-party designee box is a limited disclosure authorization, not a power of attorney.

Question 4

A taxpayer has a Form 2848, recorded on the IRS Centralized Authorization File (CAF), naming Enrolled Agent Adena to represent the taxpayer in income tax matters for 2023. The taxpayer later signs a fully completed new Form 2848 naming a different enrolled agent, Bao, for the same matter and year. The taxpayer does not check the retention box on line 6 and does not attach a copy of Adena's form. The IRS records the new form on the CAF.

Which of the following is correct after the new Form 2848 is submitted to the IRS?

  1. Adena's authorization is revoked, because a new Form 2848 recorded on the CAF for the same matter revokes the earlier one unless the line 6 retention box is checked. (correct answer)
  2. Bao may act for the taxpayer, but Adena's authorization remains in effect unless the taxpayer files a separate revocation.
  3. Adena's authorization remains in effect unless the taxpayer also files a Form 8821 revoking it.
  4. Bao may not act until Adena signs a written substitution of representative naming Bao.
Explanation: Instructions for Form 2848, line 6 (Retention/Revocation of Prior Power(s) of Attorney). A power of attorney recorded on the CAF generally revokes any earlier power of attorney recorded for the same matter; to keep the earlier one in effect, the taxpayer must check the line 6 box and attach a copy of it. The decisive facts are that the new form covers the same matter and year, is recorded on the CAF, and leaves the retention box unchecked. Choice A is correct. Choice B is wrong because it states the reverse of the default: no separate revocation is needed. Choice C is wrong because Form 8821 is a tax information authorization and is not used to revoke a power of attorney. Choice D is wrong because the taxpayer may appoint a new representative directly; a substitution by the existing representative is not required.

Question 5

An enrolled agent represents a taxpayer under a Form 2848 during an IRS examination of the taxpayer's 2023 Form 1040. The examination results in a $4,200 overpayment, and the IRS is preparing to issue a paper refund check. The agent proposes that the taxpayer endorse the check so the agent can deposit it in the agent's client trust account and deduct the agent's fee.

Which of the following is correct regarding the refund?

  1. The refund check will be issued to the taxpayer, and the enrolled agent may not endorse or negotiate it or accept the refund into an account the agent controls. (correct answer)
  2. The refund check will be issued to the enrolled agent, because representing a taxpayer in an examination includes receiving the refund that results from it.
  3. The enrolled agent may deposit the check into the client trust account if the taxpayer first endorses the check and gives written consent.
  4. The IRS will hold the refund until the taxpayer files a new Form 2848 that authorizes the enrolled agent to receive it.
Explanation: Circular 230 § 10.31; Form 2848, line 5b and its instructions. A practitioner may not endorse or otherwise negotiate a government check issued to a client for a federal tax liability, including by directing or accepting payment into an account the practitioner owns or controls, and a Form 2848 does not authorize a representative to do so. The decisive fact is that the agent controls the trust account; the taxpayer's endorsement and consent do not change that. Choice A is correct. Choice B is wrong because a power of attorney covers acts in the tax matter, not receipt of the client's refund. Choice C is wrong because depositing the check into an account the agent controls is accepting payment that § 10.31 prohibits, whatever the taxpayer signs. Choice D is wrong because the power of attorney rules do not delay the refund; it is issued to the taxpayer.

Question 6

A client is under examination for her 2023 Form 1040 and also has a balance due for 2021. She asks her enrolled agent to prepare a Form 2848 that lists the 2023 examination and the 2021 collection matter and also authorizes the enrolled agent to represent her in 'any other tax matter and for any other tax year that may arise.' The enrolled agent tells the client that the IRS will not accept the form as drafted.

Which of the following is the correct reason the IRS will not accept the Form 2848 as drafted?

  1. A Form 2848 must identify specific tax matters and tax periods, and an authorization that purports to cover matters or years not yet identified is not a valid power of attorney for IRS purposes. (correct answer)
  2. A Form 2848 may list only one tax matter and one tax period, so the 2023 examination and the 2021 collection matter must be covered by separate powers of attorney.
  3. A Form 2848 is accepted only for a matter that the IRS has already opened, so the enrolled agent must wait until a new matter arises before adding it to the form.
  4. A Form 2848 that covers more than one matter is not valid unless it is notarized, because the IRS requires a notary's acknowledgment for representation in both examination and collection matters.
Explanation: Form 2848 instructions, line 3. A power of attorney must describe the specific tax matter or matters and the specific tax period or periods for which the representative is authorized to act, and the IRS will not accept a general authorization such as 'all tax years' or 'all tax matters.' The client may list both the 2023 examination and the 2021 collection matter on the same Form 2848, but the catch-all language does not identify a tax matter or period and is not a valid grant of authority. Choice B misstates the rule: Form 2848 provides multiple lines so that several matters and periods may be listed on one form. Choice C misstates the rule: a taxpayer may file a Form 2848 before any matter is pending (for example, for the current tax year), and it is maintained in the Centralized Authorization File for future use. Choice D misstates the rule: Form 2848 does not require notarization; the taxpayer's signature and the representative's declaration are sufficient, and listing multiple matters does not change the form's character.

Question 7

An enrolled agent has been representing a single taxpayer under a Form 2848 in an IRS examination of the taxpayer's 2023 Form 1040. Before the examination is completed, the taxpayer dies. The taxpayer's daughter, who is the executor of the estate, asks the enrolled agent to continue representing the estate in the examination and to sign the necessary forms.

Which of the following is correct regarding the enrolled agent's authority?

  1. The enrolled agent may continue to act under the existing Form 2848 because the examination was pending when the taxpayer died and the executor has orally confirmed that representation should continue.
  2. The enrolled agent's authority under the Form 2848 continues until the IRS is notified in writing of the taxpayer's death, after which only the executor may communicate with the IRS.
  3. The enrolled agent may continue to represent the estate if the executor signs a written statement confirming the representation, but the enrolled agent may not sign any documents unless the executor is present.
  4. The enrolled agent's authority under the Form 2848 terminated when the taxpayer died, and the executor must file Form 56 and execute a new Form 2848 for representation of the estate to continue. (correct answer)
Explanation: Form 2848 instructions (Termination); Form 56 instructions. A power of attorney terminates if the taxpayer dies, and the representative may no longer act under it. To continue the examination, the estate's executor must notify the IRS of the fiduciary relationship by filing Form 56 and must execute a new Form 2848 in a fiduciary capacity; an oral statement by the executor is not sufficient. Choice A is wrong because the pending examination does not keep the decedent's power of attorney in effect, and oral confirmation does not satisfy the written-authorization requirement. Choice B is wrong because the power of attorney terminates upon death itself; the IRS need not receive notice for the termination to occur. Choice C is wrong because a written statement by the executor is not a substitute for Form 56 and a new Form 2848, and no rule requires the executor to be present when the representative signs documents.

Question 8

Which of the following is correct regarding the authority of a non-credentialed tax return preparer who holds a valid Annual Filing Season Program Record of Completion for 2025 to represent taxpayers before the IRS?

  1. The preparer may represent taxpayers only in an examination of a return the preparer prepared and signed during the period covered by the Record of Completion, and only before revenue agents, customer service representatives, and similar IRS employees. (correct answer)
  2. The preparer may represent a taxpayer in a Collection Due Process hearing if the hearing concerns the same tax year as a return the preparer prepared and signed for that taxpayer and the preparer has a valid PTIN.
  3. The preparer may represent a taxpayer before the IRS Office of Appeals on a deficiency arising from a return the preparer prepared and signed, if the Form 2848 expressly grants authority to appear before Appeals.
  4. The preparer may represent a taxpayer in any matter before the IRS, including the U.S. Tax Court, if the Form 2848 is also signed by the enrolled agent who supervises the preparer's work.
Explanation: References: Treasury Department Circular 230 § 10.3 (who may practice before the IRS); IRS Pub. 947, Practice Before the IRS and Circular 230; Annual Filing Season Program (AFSP) requirements. An unenrolled preparer with a valid AFSP Record of Completion may represent taxpayers only in an examination, before revenue agents, customer service representatives, and similar IRS employees, of a return the preparer actually prepared and signed during the period covered by the Record of Completion. The authority does not extend to the IRS Office of Appeals, collection matters such as Collection Due Process hearings, or the U.S. Tax Court, and a Form 2848 cannot enlarge it. Choice A correctly describes that limited authority. Choice B is wrong because a Collection Due Process hearing is a collection matter and is outside the limited AFSP representation right even for a return the preparer prepared. Choice C is wrong because an express grant in a Form 2848 cannot confer a practice right the preparer does not otherwise hold under Circular 230 or the AFSP. Choice D is wrong because eligibility to practice is personal to the individual; supervision or co-signature by an enrolled agent does not authorize an ineligible preparer to practice in broader proceedings.

Question 9

For 2025, which of the following is correct regarding a Form 8821, Tax Information Authorization?

  1. A person designated on a Form 8821 may inspect and receive confidential tax information for the listed matters and periods, but may not represent the taxpayer before the IRS or sign documents for the taxpayer. (correct answer)
  2. A person designated on a Form 8821 may represent the taxpayer before a revenue agent during an examination if the taxpayer is present at every meeting and the IRS has verified the designee's identity.
  3. A person designated on a Form 8821 may sign a waiver extending the assessment period if the taxpayer initials the waiver and the designee is the taxpayer's paid return preparer for the year in question.
  4. A Form 8821 must be signed by both the taxpayer and the designee, and the IRS will not accept the form for disclosure unless both signatures are present.
Explanation: References: Form 8821, Tax Information Authorization, Instructions. A Form 8821 authorizes the IRS to disclose the taxpayer's confidential return information to the named designee for the tax matters and periods listed on the form. It is only an information authorization: the designee may inspect and receive information, but may not represent the taxpayer before the IRS, may not sign documents on the taxpayer's behalf, and has no authority to take action for the taxpayer. Choice A states that scope correctly. Choice B is wrong because the taxpayer's presence does not convert a Form 8821 designee into a representative; representation requires eligibility to practice and a valid power of attorney, not the taxpayer's attendance. Choice C is wrong because a Form 8821 designee has no authority to execute a waiver of the assessment period or any other document; being the paid preparer does not confer that authority. Choice D is wrong because only the taxpayer signs Form 8821; no designee signature is required, and a Form 2848 is not a prerequisite to a Form 8821.

Question 10

For 2025, which of the following is correct regarding who must sign a Form 2848, Power of Attorney and Declaration of Representative?

  1. After a married couple files a joint return, a Form 2848 may be signed only by the spouse listed first on the return when the matter concerns a refund shown on that return.
  2. Spouses who filed a joint return must each submit a separate Form 2848 for a matter involving that return, even when both spouses authorize the same representative. (correct answer)
  3. For a matter involving a joint return, both spouses must sign the same Form 2848, and a form signed by only one spouse is not valid as to either spouse.
  4. A representative must sign the Declaration of Representative in Part II only if the matter is before the IRS Office of Appeals or involves a collection action; the taxpayer's signature alone is sufficient in an examination.
Explanation: Governing authority: Instructions for Form 2848, Line 1 and Line 7. If spouses or former spouses submit powers of attorney in connection with a joint return, they must each submit separate Forms 2848, even if they are authorizing the same representative, and each spouse signs his or her own form. The representative must sign the Part II Declaration of Representative. Choice B states the rule. Choice A gives the spouse listed first on the return an authority the instructions do not give: each spouse authorizes representation only for himself or herself. Choice C misstates the form rule: spouses may not share one Form 2848, and a separate form signed by one spouse is valid as to that spouse. Choice D is wrong because the representative must sign the Part II declaration in every case; the taxpayer's signature alone is not enough.

Question 11

Which of the following is correct regarding the Centralized Authorization File (CAF)?

  1. A Form 8821, Tax Information Authorization, is not recorded on the CAF because the form does not authorize representation before the IRS and is used only for disclosure of information.
  2. A Form 2848 marked for specific use and filed with the office where a case is pending is not recorded on the CAF and is honored only for that specific case. (correct answer)
  3. A power of attorney must be recorded on the CAF before the IRS will allow a representative to appear at an examination already scheduled by the field office where the case is pending.
  4. Once a power of attorney is recorded on the CAF, the IRS will not disclose return information to the representative unless the taxpayer verifies the authorization by telephone in each tax year.
Explanation: References: Form 2848, Power of Attorney and Declaration of Representative, Instructions, Specific Use Not Recorded on CAF; Form 8821, Tax Information Authorization, Instructions. The CAF is the IRS's national record of authorizations. A Form 2848 filed with the IRS is ordinarily recorded on the CAF, but a power of attorney limited to a specific matter and filed with the office handling the matter is not recorded on the CAF; it is kept in the case file and honored only for that specific matter. Choice B states this rule correctly. Choice A is wrong because a Form 8821 is normally also recorded on the CAF; the CAF contains both powers of attorney and tax information authorizations. Choice C is wrong because a power of attorney may be filed directly with the office where a case is pending; CAF recording is not a prerequisite to appearing in that case. Choice D is wrong because the recorded CAF authorization itself permits disclosure to the representative for the covered periods; the IRS does not require the taxpayer to re-verify the authorization annually by telephone.

Question 12

For 2025, which of the following is correct regarding the scope of authority granted by a Form 2848, Power of Attorney and Declaration of Representative?

  1. A Form 2848 authorizes the representative to endorse and deposit a refund check for the listed periods if the check is made payable jointly to the taxpayer and the representative and the representative is an enrolled agent.
  2. A Form 2848 authorizes an enrolled agent to represent the taxpayer before the U.S. Tax Court in a deficiency case for the listed periods without any separate application to the Tax Court if the enrolled agent is in good standing.
  3. A Form 2848 authorizes the representative to arrange direct deposit of a refund for the listed periods into an account the representative controls, if the taxpayer provides the account information and requests the change in writing.
  4. A Form 2848 authorizes the representative to perform acts the taxpayer can perform for the listed matters and periods, including receiving and inspecting confidential tax information, but not to negotiate a refund check issued to the taxpayer. (correct answer)
Explanation: References: Form 2848, Power of Attorney and Declaration of Representative, Instructions (scope of authority granted). A Form 2848 authorizes the representative to perform acts the taxpayer can perform with respect to the tax matters and periods listed, including receiving and inspecting the taxpayer's confidential return information. The instructions are explicit that this authority does not include negotiating or endorsing the taxpayer's refund check; refund checks are issued to the taxpayer. Choice D states the scope and the refund-check limit correctly. Choice A is wrong because the prohibition on negotiating a taxpayer's refund check is not lifted by the form of the payee line or the representative's credential. Choice B is wrong because practice before the U.S. Tax Court is governed by the Tax Court's own admission rules; a Form 2848 is an IRS administrative authorization and does not admit anyone to practice before the Tax Court. Choice C is wrong because a power of attorney does not authorize the representative to direct a refund into an account the representative controls; the IRS permits direct deposit only into accounts held in the taxpayer's name.

Question 13

A taxpayer has named an enrolled agent as her representative on a valid Form 2848 for her 2025 individual income tax. She asks the enrolled agent to sign the 2025 Form 1040 for her because she will be unavailable on the filing deadline and does not want to request an extension.

Which of the following is correct regarding the enrolled agent's authority to sign the return?

  1. The Form 2848 authorizes the enrolled agent to sign the return because a power of attorney for a tax matter includes the authority to perform acts the taxpayer can perform.
  2. The enrolled agent may sign the return if the taxpayer sends a signed written statement designating the agent to sign for that purpose.
  3. The Form 2848 does not, by itself, authorize the enrolled agent to sign the taxpayer's individual income tax return; being unavailable on the filing deadline is not a basis for an agent to sign it. (correct answer)
  4. The enrolled agent may sign the return if the unavailability is for business purposes and the return will be filed electronically with the agent's Preparer Tax Identification Number.
Explanation: Treas. Reg. § 1.6012-1(a)(5); Instructions for Form 2848, line 5a. A Form 2848 authorizes representation before the IRS; it does not by itself authorize the representative to sign the taxpayer's income tax return. An agent may sign an individual income tax return only if the taxpayer cannot sign because of disease or injury, is continuously absent from the United States for at least 60 days before the due date, or has specific IRS permission for other good cause, and the Form 2848 must then grant that authority on line 5a. Being unavailable on the filing deadline is not one of these circumstances. Choice C is correct. Choice A is wrong because a power of attorney under Form 2848 does not include authority to sign a return unless line 5a grants it, and that authority may be granted only in the circumstances the regulation lists. Choice B is wrong because a written statement from the taxpayer does not create a permitted circumstance; without disease, injury, extended absence from the United States, or IRS permission, the regulation does not allow an agent to sign. Choice D is wrong because a business reason for being unavailable is not a permitted circumstance, and e-filing with the agent's PTIN does not affect who may sign the taxpayer's return; the PTIN identifies the paid preparer, not a signing agent.

Question 14

Which of the following is correct regarding revocation of a power of attorney for a matter before the IRS?

  1. A new Form 2848 recorded on the CAF generally revokes earlier powers of attorney recorded for the same matters, unless the line 6 box is checked and copies are attached. (correct answer)
  2. A taxpayer may revoke an outstanding power of attorney orally during a telephone call with an IRS employee, and the revocation is effective at the end of the call if the taxpayer verifies identity.
  3. A taxpayer who wants to revoke a power of attorney without naming a new representative may do so only by filing a new Form 2848 that names no representative.
  4. A representative may withdraw from representing a taxpayer only after obtaining the taxpayer's written consent, and the withdrawal is effective on the date the taxpayer's consent is received by the IRS.
Explanation: Governing authority: Instructions for Form 2848, Line 6 and Revocation of Power of Attorney/Withdrawal of Representative. If the IRS records a new power of attorney on the CAF, it generally revokes any earlier power of attorney recorded for the same matter; a specific-use form revokes only an earlier form on file with the same office for the same matters. A taxpayer who wants to keep existing powers of attorney checks the line 6 box and attaches a copy of each. Choice A states the rule. Choice B is wrong because a revocation must be written and signed; an oral statement on a telephone call does not revoke the power. Choice C misstates the revocation procedure: a taxpayer who does not name a new representative writes REVOKE across the top of a copy of the power of attorney, signs and dates it, and sends it to the IRS, or sends a signed statement of revocation. Choice D is wrong because a representative withdraws by writing WITHDRAW across a copy of the power of attorney, signing and dating it, and sending it to the IRS; the taxpayer's consent is not required.

Question 15

Which of the following is correct regarding a representative's substitution of another representative to appear before the IRS?

  1. A representative may substitute another practitioner who holds the same credential without any authority from the taxpayer, if the substitute files a written notice of substitution with the IRS office handling the matter.
  2. A representative may substitute or add a representative only if the taxpayer gave written permission or checked the line 5a box, and the representative then signs a new Form 2848 on the taxpayer's behalf. (correct answer)
  3. A representative may substitute another practitioner if the taxpayer consents orally during a recorded telephone conference with the IRS and the consent is noted in the case file.
  4. A substitute representative automatically has authority over all tax periods of the taxpayer, regardless of the periods listed on the original power of attorney, unless the taxpayer restricts the substitution in writing.
Explanation: Governing authority: Instructions for Form 2848, Line 5a (Substituting or adding a representative). Unless the power of attorney specifically provides otherwise, it does not include the power to substitute or add another representative. A representative may do so only if the taxpayer gives written permission or delegates the authority by checking the line 5a box. The representative then sends in a new Form 2848, signs it on the taxpayer's behalf, and submits it with a copy of the written permission or the original Form 2848 that delegated the authority; the new representative signs the Part II declaration. Choice B states the rule. Choice A drops the requirement of the taxpayer's written authority: sharing a credential does not permit a substitution. Choice C is wrong because the permission must be in writing or given on line 5a; an oral consent at a conference does not satisfy the rule. Choice D is wrong because a substitute's authority is limited to the matters and periods on the power of attorney.