The IRS today publicly released a legal advice memorandum* concerning when is a power of attorney (POA) sufficient in order for an IRS employee to solicit documents and discuss details of a partnership-level proceeding with the individual granted the power of attorney. AM2015-004 (release date April 3, 2015, and dated March 26, 2015)
Read legal advice memo [PDF 74 KB].
*The memorandum is legal advice, signed by executives in the National Office of the Office of Chief Counsel and issued to IRS personnel who are national program executives and managers. The memo is issued to assist IRS personnel in administering their programs by providing authoritative legal opinions on certain matters, such as industry-wide issues. It is not to be used or cited as precedent.
The IRS legal advice memo asks:
A third question is also implied:
The legal advice memo concludes that:
The memo seeks to explain the parameters, or universe, of people with whom the IRS may make inquiries pertaining to and disclose details of a TEFRA partnership-level examination. It initially concludes that this universe includes direct and indirect partners of a partnership, or members of an LLC treated as a partnership. The memo then states that to the extent that these persons have inspection rights, such persons’ attorney in fact also have such rights.
Note that the Internal Revenue Manual (IRM) contains special provisions regarding POAs in the TEFRA context that are not included in the instructions to the Form 2848. For example, IRM 184.108.40.206.6 (June 20, 2013) provides instructions that:
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