Preparing a tax return and representing a taxpayer before the IRS are different roles.

In this episode, Jason Carr explains where new tax preparers need to draw the line. He covers the practical difference between explaining an IRS notice and representing a taxpayer, the distinction between Form 2848 and Form 8821, the limits on unenrolled preparers, and why engagement letters should clearly define scope.

Jason covers:

• Why tax preparation and IRS representation are different roles
• How to recognize when a client is asking for representation
• The difference between Form 2848 and Form 8821
• What limited representation rights may apply to AFSP participants
• Why engagement letters should exclude tax controversy work unless separately agreed
• How to triage IRS notices
• When to refer matters to an appropriate professional

Key Takeaways

• Preparation and representation are different roles: Preparing a return does not automatically mean representing the taxpayer before the IRS.
• Form 2848 is for representation: It authorizes an eligible individual to represent a taxpayer before the IRS.
• Form 8821 is for information access: It allows access to confidential tax information, but it does not authorize representation.
• AFSP rights are limited: AFSP participants may have limited representation rights for returns they prepared and signed.
• Scope should be written down: Engagement letters should clarify that IRS representation is outside the preparation engagement unless separately agreed.
• Referrals build trust: Knowing when to refer is part of being a professional.

Resources Mentioned

• MuseSpring: https://musespring.com
• Tax Business Blueprint Program: https://musespring.com
• The Law Office of Jason Carr, PLLC: https://carrtaxlaw.com

Disclaimer

Content on this channel is provided by MuseSpring LLC for educational and informational purposes only. It does not constitute legal or tax advice or establish an attorney-client relationship. MuseSpring LLC is not a law firm. Jason D. Carr appears in MuseSpring content in his capacity as an educator and founder of MuseSpring LLC, not in his capacity as an attorney with The Law Office of Jason Carr, PLLC. For advice specific to your situation, consult a qualified tax professional or licensed attorney.

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