OPR Says to De-CAFinate Your Old Client Authorizations
The IRS reminds tax practitioners to routinely withdraw outdated client authorizations from the Central Authorization File (CAF) to protect taxpayer data. Use a marked “WITHDRAW” Form 2848 or request a CAF77 report to manage and remove old records.
The IRS Office of Professional Responsibility (OPR) recently reminded Circular 230 practitioners to maintain an up-to-date list of your valid authorizations in the IRS’ Central Authorization File (CAF) Unit and routinely withdraw any client authorizations no longer needed.
Why withdraw old authorizations? Several provisions of Circular 230 implicate a practitioner’s obligation to client authorizations and a responsibility to safeguard taxpayer data. If an authorization is listed as active in the CAF, the possibility exists that a cybercriminal could misuse it to gain access to valuable taxpayer information. You can prevent that unnecessary connection and risk.
There is no fixed form for withdrawing a CAF, but it must be done in writing and include all relative data. OPR says the easiest way is to write “WITHDRAW” across the top of the first page of a copy of the Form 2848, Power of Attorney and Declaration of Representation, with the current signature and date (see instructions).
You can also request a CAF77 report for a printout or electronic copy of current authorizations. See Freedom of Information Act's sample CAF client listing request letter. Edit and return your list per the instructions.
If you link your CAF numbers to your Tax Pro Account, you can manage all active authorizations in a more efficient and secure manner.
Topics:
