The Internal Revenue Service has rolled out a digital system for submitting power of attorney authorizations, streamlining how taxpayers and professionals manage federal taxes. By supporting IRS Form 2848 and IRS Form 8821 online, the agency replaces weeks of paper delays with faster, more secure processing as part of its Inflation Reduction Act modernization effort.
For decades, taxpayers and professionals relied on paper forms, mailed or faxed to the Internal Revenue Service, to establish authorization. Processing often stretched into weeks. The new IRS digital power of attorney system introduces two pathways that replace those bottlenecks.
The first is the Tax Pro Account. When a tax professional submits an authorization request through this system, it appears instantly in the taxpayer’s IRS Online Account for review. Approval requires little more than logging in and confirming the request. If accepted, the authorization is added directly to the Centralized Authorization File, creating a complete and traceable record. Most requests are processed in real time, with a small number taking up to 48 hours.
The second pathway, Submit Forms 2848 and 8821 Online, accommodates individual and business taxpayers. Here, users upload completed and signed documents through the IRS portal. Processing is not immediate; staff handle these forms on a first-in, first-out basis. Even so, the system is faster and more secure than postal delivery or fax transmission.
IRS Form 2848, Power of Attorney and Declaration of Representative, allows a professional to act as an attorney-in-fact on behalf of a taxpayer. That authority extends to representing clients in tax matters such as filing, responding to IRS notices, and clarifying federal tax obligations.
IRS Form 8821, Tax Information Authorization, is narrower. It permits a representative to access confidential tax information without granting authority to represent the taxpayer before the agency. This distinction matters for families and financial institutions seeking details without full representation rights.
Eligibility is limited to certain professionals: attorneys, certified public accountants, enrolled agents, enrolled actuaries, and retirement plan agents. Taxpayers themselves must hold an IRS Online Account tied to a U.S. address. Once these conditions are met, they can grant or revoke attorney power digitally, giving them more control over their financial powers than ever before.
The shift to online power of attorney submissions is part of the Internal Revenue Service's sweeping modernization strategy. Backed by funding from the Inflation Reduction Act, the agency aims to achieve full paperless processing by the 2025 filing season. Commissioner Danny Werfel has described this transformation as one of the most significant technology upgrades in government history, designed to make tax administration faster, more accurate, and more secure.
Power of attorney is not unique to tax law. In estate planning, a durable power can authorize a representative to make financial decisions, manage bank accounts, pay bills, or even control access to a safe deposit box. In healthcare, similar authority may extend to medical decisions in the best interests of a loved one. These broader legal documents typically require a notary public and, in many states, witnesses.
By comparison, the IRS digital power of attorney is narrower in scope. It applies strictly to tax matters—federal taxes, confidential tax information, and interactions with the IRS—not to wider financial or medical powers.
IRS leaders have positioned the digital authorization system as central to modernization. “It is now our goal that by the 2025 filing season, the IRS will achieve paperless processing,” Commissioner Danny Werfel said in remarks on the agency’s transformation. He noted that moving attorney power requests online reduces backlogs and improves service for millions of taxpayers.
Agency guidance also highlights the convenience of the Tax Pro Account. According to the IRS, digital authorization requests are simplified versions of IRS Forms 2848 and 8821. Once submitted by a tax professional, they appear in the taxpayer’s IRS Online Account for approval, rejection, or electronic signature.
Practitioners view the change as overdue. “Being recognized as an attorney-in-fact through the IRS digital system gives us the immediate ability to represent clients in tax matters without waiting weeks for processing,” said one enrolled agent affiliated with a student tax clinic program. For professionals handling estate planning documents and federal taxes, the ability to file and track requests online significantly improves daily practice.
For taxpayers, the new digital system means faster responses to IRS notices and greater control over who can act on their behalf. They can grant, revoke, or track authorizations in real time, reducing the risk of errors or unauthorized access to confidential tax information. Business taxpayers, who may face more complex cases, can continue submitting forms online but should expect manual review.
For tax professionals, the ability to represent clients immediately after approval creates efficiency gains across multiple tax years. The IRS has signaled more features ahead as part of its Inflation Reduction Act initiatives. By 2025, the agency expects most interactions—from filing a tax return to managing power of attorney—will be available digitally, marking a significant shift in how Americans handle federal taxes.
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