The New York Times reports on the IRS’s new Electronic Account Resolution system in this article: “I.R.S. Set to Resolve Disputes Online.” Under the system, lawyers, accountants, and enrolled agents will be able to resolve disputes with the IRS on behalf of their clients electronically. The article reports:
Under the present nonelectronic system, tax professionals must show the agency a power of attorney from the taxpayer before the I.R.S. will talk to them. While I.R.S. clerks will sometimes accept a faxed form, getting approval to represent a client can take days.With the new system, a taxpayer fills out the power of attorney form and gives it to the tax adviser. Then the adviser logs on to an I.R.S. computer, using a secure Internet connection, punching in the client’s adjusted gross income from any of the three previous years, the year of the return and the taxpayer’s birth date. The taxpayer also gives a self-selected personal identification number.
To start out, the system will be used to resolve simple problems, like tracing payments, tracking refunds and entering into installment agreements to pay taxes. Later it may be utilized to resolve more complex problems, like proposals to settle a tax debt for less than the full amount. The system will only be available to tax professionals who file 100 or more tax returns electronically.