More Security Needed On Electronic Powers of Attorney

When tax professionals electronically submit power of attorney forms, taxpayer information may be at risk of being disclosed without authorization or being misused. 

A Treasury Inspector General for Tax Administration (TIGTA) report concludes that controls are not sufficient to ensure that tax professionals obtain a signed form 2848 from their client before submitting it via e-services disclosure authorization. Essentially, it seems that tax professionals can electronically obtain powers of attorney without a signed form 2848, which gives the proper authorization for a professional to receive a client’s tax information. 

The IRS does not agree that tax professionals are misusing e-Services, but IRS officials plan to improve internal controls for accessing and using e-Services.  

See Roger Russell, TIGTA: Security Insufficient on Electronic Powers of Attorney, Accounting Today, Sept. 17, 2012. 

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this blog to my attention.