EA, discuss examination w/o POA?

[AZ-Tax]

I hope to have my EA by end of the year. This morning I needed to call IRS about an examination letter my client received. My name is on the clients 2010 tax return authorizing discussion of the clients tax return but the IRS examination dept cannot discuss with me anything until I have a 8821 (POA) on file. Does that change if and when I become an EA?

[taxea]

If you are the third party designee on the current year return they will speak with you. However this is only good for the current year. Once 4/15/12 rolls around you will need a POA for 2010 return.
You can always discuss speculation senarios with IRS. i.e. "in general if I have a situation where xxx is in play, how would the IRS handle the situation or require me to deal with it." This way you are not talking specifically about one TP.

[Jiggers]

When you are an EA, you still need a POA, 2848, to discuss anything with the IRS.

That also applies to CPA's and Attorneys.

[taxea]

When you are an EA, you still need a POA, 2848, to discuss anything with the IRS.

That also applies to CPA's and Attorneys.

I thought that was a given.

[taxea]

I hope to have my EA by end of the year. This morning I needed to call IRS about an examination letter my client received. My name is on the clients 2010 tax return authorizing discussion of the clients tax return but the IRS examination dept cannot discuss with me anything until I have a 8821 (POA) on file. Does that change if and when I become an EA?

I believe you can find your answer in CIR 230

[Jiggers]

I thought that was a given.

Opening paragraph said "Does that change if and when I become an EA?".

I took that to mean that he doesn't need a POA when he is an EA.

[AZ-Tax]

The examation status is the key here I believe

According to the lady in the examination dept I talked to, being the preparer and the authorized to discussed the tax return only allows me to "discuss" the tax return. When its an examination letter, the POA is required so based on what Jiggers said, having the EA will not change anything.

[Uncle Sam]

That doesn't mean you shouldn't take the EA exam or that you wouldn't be
better off with it.

[Gary2]

What changes is that once you're an EA, the 2848 can be filed for any return, not just a return you prepared. Note that being named the third-party designee on a return doesn't qualify you. You must either have signed as paid preparer, or must have prepared the return while being exempt from the filing requirement (e.g. prepared it for free).

The 8821 is not a power of attorney. It only allows the IRS to give you information. It doesn't allow you to represent the taxpayer, make decisions, or sign things on their behalf. Essentially it gives you access to all of the information related to the returns specified (as opposed to the third party designee, which only gives you access to the information on the actual return). The 8821 can give this access to anyone, not just an EA. It could, in theory, be used to grant access to a bank loan officer in lieu of a 4506-T.

In practice, the IRS will allow you to explain things about the return with only the 8821 (or verbal authorization), without being an EA or similar. I'm not sure where the precise line is drawn, but I've never had an IRS agent tell me I've crossed the line while trying to cope with a CP2000.

[Gary2]

According to the lady in the examination dept I talked to, being the preparer and the authorized to discussed the tax return only allows me to "discuss" the tax return. When its an examination letter, the POA is required so based on what Jiggers said, having the EA will not change anything.

When you say "examination letter", do you mean it's been chosen for audit, or one of the common, more automated CP letters?

The description of "Third Party Designee" in the 1040 instructions says that they should be able to discuss "certain notices" with you. I'm curious as to why this particular examination letter doesn't come under that heading.