The Unenrolled Return Preparer

Limited Practice Without Enrollment Rev. Proc. 81-38

Publication 470, Limited Practice Without Enrollment (PDF) explains Revenue Procedure 81-38, which prescribes the standards of conduct, scope of authority, and the circumstances under which an individual preparer of tax returns may exercise the privilege of limited practice as the taxpayer's representative before the IRS, without enrollment and pursuant to section 10.7(a)(7) of Treasury Department Circular No. 230 (PDF).

The Unenrolled Return Preparer
The unenrolled return preparer is eligible to represent a taxpayer only with regard to a tax liability arising from a tax return prepared by that individual.

As the taxpayer's representative, the unenrolled return preparer is expected to recognize questions, issues and factual situations related to the tax return at issue and assist in the resolution of the tax matter.

Limited Representation
Representation is defined as advocating, negotiating, arguing facts or law before the IRS or acting on behalf of the taxpayer. The unenrolled return preparer may only practice or act as the taxpayer's representative before examining officers of the Compliance function (Examination). The preparer may not act in this capacity before the Appeals and Collection offices (including ACS), and Headquarters officials. In addition, the following acts are beyond the scope of the unenrolled return preparer:

Executing claims for refund
Receiving checks in payment of any refund of IRS taxes, penalties or interest
Executing consents to extend the statutory
Executing closing agreements with respect to a tax liability or specific matter
Executing waivers of restriction on assessment or collection of a deficiency in tax

Tax Information Authority
Any third party may be designated to receive tax information. When an unenrolled return preparer is designated on a power of attorney form but either did not prepare the tax return at issue or is corresponding with other than examining officers of Compliance function, the preparer is still entitled to receive account information related to period of assessment or collection of tax those tax periods listed on the authorization. The preparer is not able to:

negotiate payment arrangements
argue the validity of the assessment
request extensions on deadlines
request adjustments to an account

Completing an Authorization
If a tax matter arises from a tax return prepared by the unenrolled return preparer, that preparer may be granted an authorization for the purpose of representing the taxpayer before the Examination function by selecting designation "H" on Form 2848, Power of Attorney and Declaration of Representative (PDF).

The unenrolled return preparer may be asked to provide verification to confirm they, in fact, prepared the return, i.e. the signature page of the tax return.

If the tax matter at issue arises from a tax return not prepared by the unenrolled return preparer, the taxpayer may enlist the assistance of such a preparer by granting a Tax Information Authorization, by completing Form 8821 (PDF) or by granting the authorization over the phone.

Note: When a Form 2848 is completed but the unenrolled return preparer is not seeking to or is ineligible to represent the taxpayer, Form 2848 will be returned. In this case the representative must file a Form 8821.

CAF Processing Sites
Ogden Accounts Management Center
1973 N. Rulon White Blvd., M/S 6737
Ogden, UT 84401
Fax (801) 620-4249

Memphis Accounts Management Center
5333 Getwell Road, Stop 8423
Memphis, TN 37501
Fax (901) 546-4115

Philadelphia Accounts Center
11601 Roosevelt Blvd, DPSW 312
Philadelphia, PA 19255
Fax (215) 516-1017

Note: This page contains one or more references to the Internal Revenue Code (IRC), Treasury Regulations, court cases, or other official tax guidance. References to these legal authorities are included for the convenience of those who would like to read the technical reference material. To access the applicable IRC sections, Treasury Regulations, or other official tax guidance, visit the Tax Code, Regulations, and Official Guidance page. To access any Tax Court case opinions issued after September 24, 1995, visit the Opinions Search page of the United States Tax Court.