How Will You Represent Your Clients When They Get Audited by the IRS?

You must be eligible to practice before the IRS in order to represent your clients in an audit or to execute a Power of Attorney. Representing clients during an IRS audit is usually an excellent source of revenue as well as benefiting the client by shielding and separating him from the IRS.
After a few years of preparing tax returns your clients will begin bringing IRS Notices to your office and look to you to handle their problem with IRS. I always like to attach a power of attorney to any correspondence that I send to the IRS.

To represent clients, you prepare Form 2848 which may be downloaded from the IRS website.

Form 2848, Power of Attorney, authorizes an individual to represent a taxpayer before the IRS. The individual must be a person eligible to practice before the IRS.

Eligible individuals are listed in Part II of Form 2848 and include:

  • An attorney
  • A CPA
  • An Enrolled Agent
  • An officer of the taxpayer’s corporation
  • A full-time employee of the taxpayer
  • An immediate family member such as a spouse, parent, child, brother, sister
  • Enrolled Actuary
  • Unenrolled Return Preparer

Check out the instruction to Form 2848 and learn how to qualify for one of the eight categories of eligible individuals so you can represent your clients before the IRS.

 


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