TAP 306-016

Third Party Authorization Expansion

Issue Statement:

Taxpayers are unable to utilize the checkbox authority past the one year period from the original due date of the returns which were extended due to the disaster extension provisions.

Goal Statement:

The third party authorization period should be one year, but the period should begin with the actual due date of the return based on any valid extension of time for filing.

Proposal:

The Internal Revenue Service (IRS) should expand the third party authorization to one year from the due date of the return including any valid extensions based on a presidential disaster declaration or a timely filed extension form.  Many taxpayers, especially those in disaster areas, are not able to file their returns by the April 15 due date.  The third party designation should be valid for one year from the extended due date.

Response Notes:

Sue Sottile forwarded this issue to Jesse Gonzales with copy to Karen L. Hill, Management and Program Analyst, W&I, Customer Account Serviceson 01/07/2007.

Wage and Investment Accounts Management does not concur with TAP's recommendation for a variety of policy, privacy, and legal issues:

• Although the 1040 Designee (Checkbox) authority was expanded to include sharing inforamtion to resolve some account issues, it continue to be nothing greater than disclsoure authority to assist in the completion of return processing and resolve issues within a short period of time.
• A Third Party Designeed does not have the authority to represent or resolve issues with Examination or Collections personnel. 
The Designee authority is currently irrevocable.
• Customer Service Representatives would be required to perform additional research to determine when the Check Box authority ends, if the period is extended.  This change could cause confusion and cuase inadvertent disclsoures.