Publication 947 - Practice Before The Irs And Power Of Attorney (Page 4 of 19) in pdf

Who Cannot Practice Before the IRS?

5. An employee. A regular full-time employee can

represent his or her employer. An employer can be,

In general, individuals who are not eligible or who have lost

but is not limited to, an individual, partnership, corpo-

the privilege as a result of certain actions cannot practice

ration (including a parent, subsidiary, or other affili-

before the IRS. If an individual loses eligibility to practice,

ated corporation), association, trust, receivership,

the IRS will not recognize a power of attorney that names

guardianship, estate, organized group, governmental

the individual as a representative.

unit, agency, or authority.

6. A fiduciary. A fiduciary (trustee, executor, personal

Corporations, associations, partnerships, and other

representative, administrator, receiver, or guardian)

persons that are not individuals. These organizations

stands in the position of a taxpayer and acts as the

(or persons) are not eligible to practice before the IRS.

taxpayer, not as a representative. See Fiduciary

under When Is a Power of Attorney Not Required,

Loss of Eligibility

later.

Generally, individuals lose their eligibility to practice before

the IRS in the following ways.

Representation Outside the United States

•

Not meeting the requirements for renewal of enroll-

ment (such as continuing professional education).

Any individual may represent an individual or entity, who is

•

outside the United States, before personnel of the IRS

Requesting to be placed in inactive retirement sta-

when such representation occurs outside the United

tus.

States. See section 10.7(c)(1)(vii) of Circular 230.

•

Being suspended or disbarred by the Office of Pro-

fessional Responsibility for violating the regulations

Authorization for Special Appearances

governing practice before the IRS.

The Commissioner of Internal Revenue, or delegate, can

Failure to meet requirements. Individuals who fail to

authorize an individual who is not otherwise eligible to

comply with the requirements for eligibility for renewal of

practice before the IRS to represent another person for a

enrollment will be notified by the IRS. The notice will

particular matter. The prospective representative must re-

explain the reason for noncompliance and provide the

quest this authorization in writing from the Office of Profes-

individual with an opportunity to furnish information for

sional Responsibility. However, it is granted only when

reconsideration. The individual has 60 days from the date

extremely compelling circumstances exist. If granted, the

of the notice to respond.

Commissioner, or delegate, will issue a letter that details

Inactive roster. An individual will be placed on the

the conditions related to the appearance and the particular

roster of inactive individuals for a period of three years, if

tax matter for which the authorization is granted.

he or she:

The authorization letter should not be confused with a

•

Fails to respond timely to the notice of noncompli-

letter from an IRS center advising an individual that he or

ance with the renewal requirements,

she has been assigned a Centralized Authorization File

•

Fails to file timely the application for renewal, or

(CAF) number. The issuance of a CAF number does not

•

indicate that an individual is either recognized or author-

Does not satisfy the requirements of eligibility for

ized to practice before the IRS. It merely confirms that a

renewal.

centralized file for authorizations has been established for

The individual must file an application for renewal and

the individual under that number.

satisfy all requirements for renewal after being placed in

inactive status. Otherwise, at the conclusion of the next

Students in LITCs and the STCP. A student who works

renewal cycle, he or she will be removed from the roster

and the enrollment or registration terminated.

in a Low Income Taxpayer Clinic (LITC) or Student Tax

Clinic Program (STCP) who is supervised by a practitioner

Inactive retirement status. Individuals who request to be

may request permission to represent another person

placed in an inactive retirement status will be ineligible to

before the IRS. Authorization requests must be made to

practice before the IRS. They must continue to adhere to

the Office of Professional Responsibility. If granted, a letter

all renewal requirements. They can be reinstated to an

authorizing the student’s special appearance and detailing

active enrollment status by filing an application for renewal

any conditions related to the appearance will be issued.

and providing evidence that they have completed the re-

Students receiving an authorization letter generally can

quired continuing professional education hours for the en-

represent taxpayers before any IRS function or office sub-

rollment cycle or registration year.

ject to any conditions in the authorization letter. If you

intend to have a student represent you, review the authori-

Suspension and disbarment. Individuals authorized to

zation letter and ask your student, your student’s supervi-

practice before the IRS are subject to disciplinary proceed-

sor, or the Office of Professional Responsibility if you have

ings and may be suspended or disbarred for violating any

questions about the terms of the authorization.

regulation governing practice before the IRS. This includes

Page 4

Publication 947 (May 2012)

Publication 947 - Practice Before The Irs And Power Of Attorney Page 4

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