Take the guesswork out of client issues by learning IRS transcripts inside and out

Every transcript tells your client’s tax story – it’s all about knowing how to read and use them well. When you can identify types quickly and retrieve them safely, you save time, reduce client stress and ensure accuracy. 

Below, you’ll find a few of the top questions from a recent webinar on the topic and their corresponding answers. If you choose to watch the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.    

Q: Do we need to be an EA or CPA to request transcripts for clients? Or can we use Form 8821 without those credentials?
A: Yes, you can use Form 8821 to request IRS transcripts without being an enrolled agent (EA), CPA or attorney. The key difference lies in the authority the form grants you access to versus the representation it provides.

Form 8821 allows you to receive and inspect a taxpayer’s confidential information, such as IRS transcripts, account history or notices. It does not authorize you to act on the taxpayer’s behalf or represent them before the IRS.

You can request Account, Wage & Income, Return or Record of Account transcripts. You can access these transcripts via IRS e-Services, Transcript Delivery System (TDS) or through mail/fax if authorized. However, you cannot discuss the taxpayer’s case with the IRS.

Q: Is it possible to get a transcript for a deceased person?
A: Yes, you can obtain IRS transcripts for a deceased taxpayer. The IRS will only release transcripts or any confidential tax information for a deceased person to someone legally authorized to act on their behalf. This includes the executor or personal representative, the administrator of the estate, the surviving spouse, a court-appointed or family personal representative, and an authorized agent, such as a tax preparer.

Q: Are DocuSign signatures acceptable for Form 2848?
A: Yes, DocuSign (and other digital signatures) can be used on Form 2848. The IRS accepts an electronic/digital signature on Form 2848. The signature must meet the IRS’s definition of an acceptable electronic signature.

Acceptable types include: 

• A typed name that is typed into the signature block 
• A scanned or digitized image of a handwritten signature that is attached to an electronic record 
• A handwritten signature input onto an electronic record 
• A handwritten signature, mark, or command input on a display screen with a stylus device 
• A signature created using third-party software

Q: If a taxpayer does not have access to their online account, will a submission of Form 2848 be approved?
A: Yes, a submission of Form 2848 can still be approved even if the taxpayer does not have access to their IRS online account. If the taxpayer cannot access their online account, the representative may still submit Form 2848 by fax or mail to the appropriate IRS office. The form must be properly completed and signed by both the taxpayer and the representative. While the IRS encourages taxpayers to use their online accounts for faster authorization, it is not a requirement.

To learn more about obtaining and using IRS transcripts, you can watch our on-demand webinar. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial.