What Is a Third-Party Designee on a Tax Return?

When filing a tax return, you can name a third-party designee, which grants a specific individual temporary and limited permission to communicate with the Internal Revenue Service (IRS) about your return. By making this designation, you authorize someone you trust, such as a family member or friend, to discuss the specifics of that particular return directly with the IRS. This can be a helpful option if you anticipate needing assistance with follow-up questions from the agency.

Scope of a Designee’s Authority

The authority granted to a third-party designee is narrow and specific. This individual is permitted to speak with an IRS agent about the processing of your tax return for the year it was filed. They can provide missing information requested by the IRS, inquire about the status of your refund, and discuss mathematical errors or other processing issues related to that specific Form 1040.

A designee cannot receive your refund check, legally bind you to any tax liability, or represent you during an audit or appeals process. They are also not permitted to sign any tax documents on your behalf or discuss tax matters from other years. For those broader needs, a more formal authorization, such as a Form 2848, Power of Attorney and Declaration of Representative, is necessary to appoint a qualified professional.

The designee’s authority is also time-sensitive. The permission automatically expires one year from the original due date of the tax return. For a 2024 tax return due on April 15, 2025, the designee’s authority would end on April 15, 2026, regardless of any filing extensions. This ensures the authorization is confined to the specific return.

Information Required to Appoint a Designee

Before you can formally appoint a third-party designee on your tax return, you must gather specific information. You will need the full name and a current telephone number for the person you wish to select. This ensures the IRS can contact the correct individual if any questions arise about your return.

A key component is creating a five-digit Personal Identification Number (PIN). This PIN is not assigned by the IRS; you, the taxpayer, choose any five digits. When your designee contacts the IRS, they will use this PIN to verify their identity and confirm they are authorized to discuss your return, which helps protect your confidential tax information.

How to Grant Authorization on Your Tax Return

You grant this authority in the “Third-Party Designee” section of your tax form, such as the Form 1040, located near where you sign and date your return. To initiate the process, you must check the “Yes” box. This indicates your intent to allow another person to discuss the return with the IRS.

After checking “Yes,” you will enter the designee’s name and phone number into the designated spaces. Following that, you will enter the five-digit PIN that you have selected for the designee to use. Ensuring this information is entered accurately is important for the authorization to be properly recorded.

Once you have completed this section and filed your return, the authorization becomes active. The designee can then communicate with the IRS regarding that specific tax return for the duration of the authorization period.