IDR Updates Third Party Access Forms and Procedures

Wednesday - 05/05/2021

In response to 2019 (HF779) and 2020 legislation (HF2461), the Department updated its rules and forms related to powers of attorney and disclosure. ARC 5532C was published on March 24, 2021. The rules were effective April 28, 2021, and the new forms, and additional information about these procedures, are now available at Confidentiality, Disclosure, and Authorized Representation on the Department’s website.

Several forms have been changed to more clearly distinguish between requests for access to confidential information and transfers of authority to act on behalf of a taxpayer. Additionally, several updates have been made to the IDR Power of Attorney form.

Please Note: Existing Power of Attorney forms already on file will be recognized but, any updates to authority must be made using the new forms. New IDR Power of Attorney forms will revoke any prior authorizations made via an IDR Power of Attorney form. Therefore, all representatives granted authority via an IDR Power of Attorney form must be listed when a new form is submitted.

Overall Highlights Include:

A process for disclosure requests that is separate from power of attorney requests
In the past, the Department required taxpayers to use a modified IDR Power of Attorney form in order to allow third parties to view or discuss the taxpayer’s confidential information with the Department.

  • The Department now has dedicated rules and a specific form for disclosure requests.
  • The form gives taxpayers flexibility to narrow or broaden the scope of disclosure permitted.

A new Representative Certification form has been developed for certain types of representatives
In the past, guardians, receivers, corporate officers, general/durable Powers of Attorney, and others who otherwise possessed the authority to act on behalf of the taxpayer typically had to fill out an IDR Power of Attorney form, giving themselves authority to represent the taxpayer.

  • The Department now has a specific form for these individuals and rules that clarify who should use the new form.
  • Required documentation is clearly outlined in law and rule.

Changes to the Power of Attorney form and rules

The Department has updated its rules and forms for IDR Powers of Attorney to clarify points of confusion, eliminate unnecessary requirements, and promote identity security.

Taxpayers now have the flexibility to leave tax periods blank if the intent is to have representation cover all tax periods.

  • Taxpayers have the flexibility to leave permit numbers blank if the intent is to have representation cover all permits.
  • Taxpayers have the flexibility to leave tax type/matters blank if the intent is to have representation cover all tax types/matters.
  • Alternative forms will no longer be accepted. In the past, the Department rules permitted an IRS Power of Attorney form to be used in place of IDR’s form by simply crossing out IRS. The Department is eliminating this option.
  • Spouses must submit separate IDR Power of Attorney forms, even if utilizing the same representative.
  • Submitting a new form will revoke all prior IDR Power of Attorney forms. When a new form is submitted, all current representatives who have been authorized via an IDR Power of Attorney form must be listed.
  • Updated rules provide clarification around who may represent a taxpayer in a contested case and in court. Being allowed to represent a taxpayer in an audit, exam, or at the informal appeals stage does not necessarily qualify a person to represent a taxpayer in a hearing before an Administrative Law Judge or the Director.

Iowa Account Numbers (IANs)
For representatives and designees, the Department has created a new ID number system as an alternative to the social security number, federal employer identification number, or the preparer tax identification number. Designees and representatives now have the ability to request an Iowa Account Number (IAN) that can be used repeatedly in interactions with the Department, to avoid the need to use a social security number on Tax Information Disclosure Designation, IDR Power of Attorney, or Representative Certification forms.

Form more information visit Confidentiality, Disclosure, and Authorized Representation.


Source URL: http://tax.iowa.gov/idr-updates-third-party-access-forms-and-procedures