Revoking a power of attorney and withdrawing as representative: methods, effects and IRS processing

Every way an authorization ends

Automatic revocation by a newer form

Most authorizations end without anyone asking. IRM 21.3.7.10 reminds CAF employees that when a taxpayer files a new authorization, “all prior authorizations of the same type (POA/TIA) are systemically revoked for the same tax matter and periods listed on the authorization unless Line 6 Form 2848 or Line 5 Form 8821, Retention/revocation of prior POA/TIA is checked and a copy of the prior authorization the taxpayer wants to remain in effect is attached.” The regulation allows a statement listing the retained representatives' names and addresses in place of a copy (26 CFR 601.505(a)(1)).

Three limits keep this from sweeping too broadly. First, it works by type: “Filing Form 2848 will not revoke any Form 8821 that is in effect,” according to the Form 2848 instructions. Second, it works by matter and period; authority for years the new form does not list survives. Third, a specific-use authorization (line 4) does not revoke CAF-recorded authorizations; the instructions say it “will not revoke any prior powers of attorney recorded on the CAF.”

How a taxpayer revokes

With a copy of the form. The Form 2848 instructions say the taxpayer “must write “REVOKE” across the top of the first page with a current signature and date below this annotation,” then mail or fax the copy using the Where To File Chart, or to the office handling a specific matter. Form 8821 works the same way: write REVOKE across the top and provide a current signature and date under the original signature.

Without a copy. The taxpayer sends a signed and dated statement that says the authority is revoked, lists the matters and periods, and lists the name and address of each representative whose authority is revoked. The instructions add: “If you are completely revoking authority, write “revoke all years/periods” instead of listing the specific matters and years/periods.”

Scope. A revocation on a form with all essential elements revokes only the representatives, MFTs and years on that form. A revocation that names no specific representative revokes all third parties listed on the form: IRM 21.3.7.10 says “Unless otherwise specified, revoke authority from all third parties listed on the Form.”

Revocations must be written. IRM 21.3.7.10.1: “All Revocations and Withdrawals must be in written format. A oral revocation/withdrawal cannot be accepted.” The word used does not matter; the IRM adds that “A third-party or taxpayer may state withdraw or revoke and it will be honored.”

How a representative withdraws

The Form 2848 instructions mirror the revocation rule: the representative “must write “WITHDRAW” across the top of the first page of the power of attorney with a current signature and date below the annotation” and send the copy to the IRS in the same manner. Without a copy, the representative sends a signed and dated statement of withdrawal that lists the matters and periods and the taxpayer's name, TIN and address (if known). The regulation's version is shorter: a signed statement identifying the taxpayer and the matters (26 CFR 601.505(b)(1)).

A withdrawal ends authority only for the representatives who sign it. IRM 21.3.7.10 tells the examiner to “Revoke the authorization only for those third parties who signed and dated the withdrawal request.” If your firm has three people on a Form 2848 and only you are leaving the case, your colleagues stay on.

Bulk withdrawals are allowed. IRM 21.3.7.10.1 accepts “A listing of clients and respective TINs with a cover sheet requesting withdrawal” if the third party provides a signed and dated statement and clearly identifies the clients. A CAF 77 client listing, available through FOIA, is a practical starting point (see CAF number). For Form 8821 forms on which additional designees were attached, the business or individual signature is enough to remove all the listed designees.

Withdrawing in Tax Pro Account

If you link your CAF number in Tax Pro Account you can withdraw from any active authorization on the CAF, including ones filed on paper. The IRS page says: “Once you withdraw, the authorization is immediately removed from the CAF database.” IRM 21.2.1.63 says the taxpayer is then notified by CP 312 (individual) or CP 313 (business). Do not confuse withdraw with cancel; cancel only removes a request the client has not yet signed.

What the CAF unit does

1. Researches the CAF and notes every period involved, including periods on the retention register (IRM 21.3.7.10.2).
2. If no authorization is recorded for what you asked to revoke or withdraw, treats the request as classified waste. It does not write back to say so.
3. Deletes the authorization for the specified representatives, forms and periods and documents the action, including the date received, CAF number, form, years deleted and the letter sent.
4. Sends Letter 2675C, Power of Attorney Termination Response, to the taxpayer and to each third party being revoked or withdrawing. The IRM says the letter “must include the tax periods that were removed because of the revocation/withdrawal request.”
5. Holds the revocation or withdrawal for 10 business days before shipping it to files, “This allows time to access the revocation or withdrawal if submitted in error.”

Keep the Letter 2675C. It is the IRS's confirmation that your authority (and your exposure to notices on that client) has ended, and it lists exactly which periods were removed.

Special cases

Death of the taxpayer. IRM 21.1.3.3 tells phone assistors that if the taxpayer is deceased, “the third-party authorizations (POAs, TIAs) are nullified.” IRM 21.3.7.10 says authorizations “expire with the death of the taxpayer” and are deleted after verification by death certificate or Form 56. To keep working the matter, the executor or other fiduciary files Form 56 and signs a new Form 2848 (see Form 56 and deceased taxpayers).

Third party designee checkbox. A revocation or withdrawal of a return checkbox designation is not handled on the CAF; IRM 21.3.7.10.2 routes it to the Accounts Management paper adjustment function to reverse the checkbox indicator. IRM 21.1.3.3.1 says the taxpayer or designee revokes by written statement. See third party designee and oral disclosure.

Oral tax information authorizations. These are revoked in writing like any Form 8821; the CAF unit prints the CAF record as the facsimile original and attaches the revocation (IRM 21.3.7.10.2).

Specific-use authorizations. These are revoked by sending the revocation to the office handling the matter, since they are not on the CAF (Form 8821 instructions).

Lost contact. When the IRS learns, through undeliverable mail or a call, that a representative no longer has any association with the taxpayer, IRM 21.3.7.12.1 tells employees to request a statement of revocation for removal from the account.

Disputes between representatives. If two representatives each claim the right to represent, 26 CFR 601.508 says the IRS “will not recognize any party” until they designate one by signed agreement. A clean revocation of the outgoing representative avoids the problem.

Professional obligations when you leave

Withdrawal from the CAF is the administrative step; Circular 230 governs how you exit the engagement. Section 10.28 says a practitioner “must, at the request of a client, promptly return any and all records of the client that are necessary for the client to comply with his or her Federal tax obligations,” and that a fee dispute generally does not change that, subject to the state-law exception for records not attached to the return. Section 10.23 says a practitioner “may not unreasonably delay the prompt disposition of any matter before the Internal Revenue Service.” If an exam, collection case or Appeals matter is open, give the client the deadlines in writing, identify any pending IRS requests, and make sure the client or the incoming representative knows the employee assigned. See Circular 230 duties.

If the reason for leaving is that the client stopped cooperating, the IRS may already be considering contacting the client directly; see when the IRS bypasses the representative.

Questions practitioners ask