According to the IRS, approximately 8 million pieces of correspondence regarding processing problems are sent out annually to taxpayers during tax season. With the introduction of the “checkbox initiative,” it expects it can resolve 90% of these issues through telephone contact with the paid preparers.
This new system does not eliminate the need for a taxpayer to sign form 2848. A power of attorney will still be required for examination matters, underreported income, appeals and collection notices.
In the future, the IRS hopes to expand the program to cover taxpayers—whether small business owners or the poor, elderly or non-English-speaking—who now rely on relatives to prepare their returns.
—Michael Lynch, Esq., professor of tax accounting
at Bryant College, Smithfield, Rhode Island.