It has been marked 'yes' at the "third party designee" to authorize the tax preparer to talk to the IRS about the tax return. Does that also authorize the tax preparer to check online the refund status for the taxpayer?
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Not sure, but you could always use the automated telephone system with the client conferenced in on the call. It's just as fast as the online system, IMO.
800.829.4477"The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
Status check only
I'm not quite sure where the need for third party designee/client on line/POA stands when one is merely checking on the status of a refund.
The IRS and most states have an automated system where certain identifying information is required, usually to include the specific amount of the refund, and then the answers generally fall into a "not received" or "being processed" or "payment will be/was made on such and such a date" category.
Such is truly an inquiry into the processing status of a known refund.
Obviously this is a different scenario from actually "discussing" the tax return and in such cases the rules are much tighter.
FEComment
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I answered the way I did because this is how I often handle things when someone calls to ask if I know when their refund will be here. I usually put them on hold, call the IRS number, conference them back in, and then go through the steps with them on the line. It takes about 60-90 seconds. I may get a half-dozen calls of this type in the course of a tax season - some Fed, some state.
I've always assumed it was OK to do it that way, and the client really likes getting the instant answer straight from the horse's mouth. (Much better than getting it from the other end of the horse)Last edited by JohnH; 11-08-2011, 03:55 PM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Simplify!
Well, I just head that off at the pass by including in my client efile acceptance notification something like the following:
"Based upon the acceptance date of this Federal electronic return, the Federal refund should be transferred to the appropriate bank on 4/15/2011 ... Taxpayers should wait at least three weeks from the time the electronic return data is acknowledged as accepted by the IRS before checking the status of a refund. To check the status of a refund, call TeleTax at 1-800-829-4477 (toll free) or go to www.irs.gov and click Where's My Refund."
(The state comments are a bit more general...payment dates are truly unknown!...but have similar instructions for checking on a refund status.)
FEComment
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If I were e-flinging yet, I'd probably do the same thing.
"The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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The on-line check is only good until the new tax season starts. Also checking the 3rd party designee box on a tax return only gives the preparer authority to speak with IRS until the next tax season and only for certain matters on the return. Anytime after that a POA or 8829 (?) is required.Believe nothing you have not personally researched and verified.Comment
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In other words, checking the third-party box is essentially only useful for the types of problems that e-flinging is supposed to eliminate anyhow, so it's pretty much a useless excercise except for a paper-filed return."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Why not use it?
I'm not sure I would go so far as to call it "useless," but it does have a limited time of existence. There are plenty of non-audit things that might need to be discussed with the preparer within the available time period. It's a simple step to take, and it certainly is far simpler than dealing with POAs et al. (Please don't tell me some folks here require/maintain a POA for all of their clients.....
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Also, I am not quite sure I get your point on efile differences, especially since most/all preparers will now be using "e-flinging" unless they have a doggone good (and documented!) excuse to do otherwise.
FEComment
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I have used the third party designee several times with clients. If there is a question on a return that has been filed and it is within the time period, it is very simple to call IRS and say you are third party designee and ask your question, get an answer and let your client know the answer. It does eliminate sending POA to IRS and waiting for it to get to them or having to fax it to them while you are talking to them.
Of course if time period has expired you have to use the POA.
I check the third party designee on all returns I do.
Linda, EAComment
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