Problems with disclosure authorization

[Nelstax]

Has anyone else been having difficulties getting disclosure authorization from the IRS site
recently? I have been going in circles. I have received the ok and printed out the forms saying I had authority for access to the clients' account but when I go forward with it I only get error messages saying they have information on the CAF but that I am not authorized for access.
This has been going on all week. Anybody have any ideas? Thanks!!!!!!!!!!!!!!!!!!!!!!!!

[JG EA]

Has anyone else been having difficulties getting disclosure authorization from the IRS site
recently? I have been going in circles. I have received the ok and printed out the forms saying I had authority for access to the clients' account but when I go forward with it I only get error messages saying they have information on the CAF but that I am not authorized for access.
This has been going on all week. Anybody have any ideas? Thanks!!!!!!!!!!!!!!!!!!!!!!!!

If I understand - are you trying to get information from the IRS by using a new disclosure letter? You need a Form 2848 to get info from the IRS. Or perhaps 8821, see:

http://www.irs.gov/taxtopics/tc312.html

[Koss]

Form 8821 v. Form 2848

Nelstax--

Are you trying to use IRS E-Services to obtain a transcript or an account history?

Only Form 2848 allows you to do that.

I don't know why, but I know this is how it works.

With your E-Services login, you can submit a Form 8821, and it will be loaded into the CAF. That will allow you to communicate with IRS personnel, whether through the main customer service call center, or through the practitioner priority line, or even in person at local IRS office. By phone, you can request that the IRS send you a transcript by fax. So loading the Form 8821 does in fact save some time. But it won't allow you to access taxpayer data online.

For direct online access, you have to use Form 2848.

The catch, of course, is that you can't use Form 2848 unless you are an enrolled agent, an attorney, or a CPA. Yes, there are a few exceptions, but they probably aren't applicable to what you're trying to accomplish.

So now that I've thought through this, here's my theoretical explanation:

Only enrolled agents and other licensed professionals can use Form 2848, but almost anyone can use form 8821.

So if you're not a licensed professional, and your access to E-Services flows only from your capacity as an ERO... well, perhaps the IRS doesn't just want to give online access to EROs who are not licensed in some other capacity.

If you are Cir. 230 certified, i.e., an EA, lawyer or CPA, then you need to use Form 2848 to gain direct online access. Form 8821 is a one-way street. It gets your authorization loaded into the CAF, but doesn't allow you to pull data from the IRS. If you want to pull data, you need the higher level of authority.

Or something like that.

BMK

[Koss]

Further Thoughts

Direct online access to taxpayer data, even with the authentication requirements that are in place (DOB, AGI from a prior year), opens the door to some pretty serious abuse...

As an analogy, it is just as sensitive and dangerous as having access to someone's credit report, or to their file at the Medical Information Bureau (for underwriting insurance policies).

An ERO who does not hold a professional licensure may have little risk if they get caught accessing taxpayer data without first obtaining a signature on a bona fide authorization. They could certainly lose their status as an ERO. But what else do they have to lose? Unlawful access could result in a criminal prosecution, but does Treasury really have the resources to pursue every case like that?

Some EROs don't even do income tax returns. I'm not kidding. They serve in a critical role, providing an important administrative function, but many of them don't actually sign any returns. And anyone can become an ERO. The background check only filters out those with a history that includes financial criminal activity (such as credit card fraud or criminal cases involving bad checks), and those who have an active or recent bankruptcy, foreclosure or other red flag indicating severe financial instability. (And of course, those who don't file and pay their own income taxes.)

Many EROs don't have that much to lose. If they lost their EFIN, they could quietly hook up with someone who still had a valid EFIN. Even though that's a violation, too, it's hard to catch. It's just too easy to get someone else to sign the returns, and just fly under the radar.

But if you have a law license, or a CPA license, or an EA license that you need to maintain in good standing...

you're probably going to be a lot more conscientious about compliance, and about not letting someone else use your login.

BMK

[Nelstax]

Thank you all for responding. I have actually had the client come in to sign forms, faxed them, got no response in any way. Went through e-services many times, got on the phone with a rep. I tried the 2848 and the 8821, nothing. In addition I filled them out online which is something else that was supposed to speed things up. haha I had great luck last year with another client's past returns, everything went smoothly and we were able to access what we needed in very little time. If I am not making much sense it's because I am like most or all of you, exhausted beyond belief. This has been very frustrating and when time is critical - as it usually is in these cases, it only adds to the stress. Of course it is partly due to the client waiting until this time of year to tend to problems from two years ago also! Thank you!

[thomtax]

If you call the professional services from a line other than the one your fax machine is on, you can fax the 2848 and get it into the system immediately. No problems with them not finding it.

LT

[Lion]

E-Services

Were you previously signed up for e-services? If so, and you added a POA for this client and cannot download his info, I'd call the e-services desk. I got 2005 data to complete my son's old return, and it was instantaneous. So call them.

[Nelstax]

Thank you again. I am going to try calling the help desk again. I only have the one phone line and was told that once I would hang up in order to fax the form they could not return my call. The rep actually laughed at me when I asked if he thought they could process the form within 24 hours once I faxed it to them.........THAT was not reassuring. haha I have been signed up for e-services for several years and this is the first time I have had problems. I can understand the overwhelming amount of business they are doing but would like to see someone follow through on it. Y'all have a good day.

[Lion]

Call

Borrow someone's cell to call so you can fax the POA.

Are you able to complete the POA on-line at e-services thus saving that call?

[Nelstax]

You are all such great help! I have already filled in the POA online but it doesn't seem to help matters any. That was the reason for my initial posting here. Do you think that faxing the form while on the phone with the IRS rep will get me any further past the point that I am now?

[thomtax]

It makes you wonder if they are looking at some type of criminal investigation and maybe this is the real reason for your problem.

It's probably just my cynical, paranoid thoughts.

LT

[Nelstax]

I'm sorry but I am not following you on this one.