Letting someone deal with the IRS for you
Handling U.S. tax matters from abroad - or simply when you are busy - is easier when someone can act for you. The IRS lets taxpayers give a third party the authority to help with federal tax matters. Depending on the type of authorization, that person can be a family member or friend, or a tax professional, attorney, or business. Each authorization grants a specific level of access, and you must formally grant permission before anyone can represent you.
The four types of third-party authorization
The IRS recognizes four distinct authorizations, each with a different scope:
- Power of Attorney (Form 2848) - Lets someone represent you before the IRS. The representative must be an individual authorized to practice before the IRS. A Power of Attorney can represent, advocate, negotiate, and sign on your behalf, argue the facts and the law, receive your tax information for the matters and years you specify, and receive copies of IRS notices and communications.
- Tax Information Authorization (Form 8821) - Appoints a person to review or receive your confidential tax information for a specific type of tax and period. It does not allow them to represent you.
- Third Party Designee - Designated directly on your tax return, this lets one person discuss that specific return and tax year with the IRS.
- Oral Disclosure - Authorizes the IRS to share your tax information with a person you bring into a phone call or meeting about a specific issue.
How to revoke an authorization
You can revoke any authorization at any time. How long each one lasts if you do nothing differs:
- Power of Attorney stays in place until you revoke it or the representative withdraws.
- Tax Information Authorization stays in effect until you revoke it or the designee withdraws.
- Third Party Designee generally expires one year from the due date of the return, not counting extensions.
- Oral disclosure is automatically revoked once the conversation ends, unless stated otherwise.
Why this matters for non-residents and foreign founders
If you run a U.S. company or file U.S. taxes from outside the country, a third-party authorization is often what makes it practical to get help. Giving your CPA a Power of Attorney on Form 2848 lets them speak to the IRS directly, receive notices, and resolve issues without you needing to be on every call - which matters when you are in a different time zone. If you only need someone to view your records rather than act for you, Form 8821 is the lighter option. Choose the narrowest authorization that covers what you actually need, and remember you can revoke it at any time once the work is done.
Sources
- IRS Tax Tip 2026-66: What taxpayers should know about IRS third party authorizations - https://www.irs.gov/newsroom/irs-tax-tips
- IRS: Power of Attorney and Other Authorizations - https://www.irs.gov/businesses/small-businesses-self-employed/power-of-attorney-and-other-authorizations
- IRS: About Form 2848, Power of Attorney and Declaration of Representative - https://www.irs.gov/forms-pubs/about-form-2848
- IRS Publication 947: Practice Before the IRS and Power of Attorney - https://www.irs.gov/publications/p947
- IRS Tax Topic 311: Power of Attorney Information - https://www.irs.gov/taxtopics/tc311
- IRS Tax Topic 312: Disclosure Authorizations - https://www.irs.gov/taxtopics/tc312