What Is an IRS CAF Number and How to Get One?

An IRS Centralized Authorization File (CAF) number is a unique nine-digit identification number assigned by the Internal Revenue Service to tax professionals. This number allows the IRS to efficiently track and manage authorizations, granting representatives the ability to act on behalf of taxpayers. It streamlines communication and ensures that only authorized individuals can access confidential tax information and discuss tax matters with the IRS. This number is a key element for tax professionals in their interactions with the IRS.

Understanding the CAF Number

The CAF number is a distinct nine-digit identifier that the IRS assigns to tax professionals the first time they submit a third-party authorization. This unique number is assigned to the representative, not the taxpayer, and is different from other identification numbers like a Taxpayer Identification Number (TIN), Employer Identification Number (EIN), or Preparer Tax Identification Number (PTIN). Its primary purpose is to allow the IRS to quickly verify a representative’s authority to act on behalf of a taxpayer, access confidential tax information, and discuss specific tax matters. This system helps the IRS manage the numerous power of attorney (Form 2848) and tax information authorization (Form 8821) forms filed by professionals.

Tax professionals, such as attorneys, Certified Public Accountants (CPAs), enrolled agents, and other authorized representatives, typically need a CAF number if they intend to communicate with the IRS on behalf of clients. The CAF system is a database that maintains records of these professionals and their authorized scope of representation. Having a CAF number eliminates the need for the IRS to repeatedly request authorization documents for each interaction, thereby streamlining the process for both the IRS and the representative.

Information Required to Obtain a CAF Number

To obtain a CAF number, a tax professional must submit an authorization form, typically Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization. These forms require specific details about both the representative and the taxpayer. For the representative, the form necessitates their name, address, professional designation, and Preparer Tax Identification Number (PTIN). If this is the representative’s first application for a CAF number, they should write “NONE” in the CAF number field on the form.

The forms also require comprehensive information about the taxpayer being represented. This includes the taxpayer’s name, address, and Taxpayer Identification Number (TIN), which could be a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Employer Identification Number (EIN) depending on the entity type. Additionally, the representative must specify the exact tax matters and periods for which they are authorized to act. This might involve listing specific tax form numbers, such as Form 1040 or Form 941, and the relevant tax years or periods. These official forms are readily available on the IRS website for download and completion.

Submitting Your CAF Number Application

After completing either Form 2848 or Form 8821 with all the necessary information, the next step involves submitting the application to the IRS. The IRS provides several methods for submission, including mailing, faxing, or electronic submission through the IRS online platform. For electronic submission, a representative can log into their secure IRS account, answer a few questions about the form, and then upload the completed and signed document. It is important to note that only one form can be submitted at a time through the online system.

Upon successful submission, the IRS typically sends an email confirmation. The processing time for receiving a CAF number can vary, often taking several weeks. During this period, the IRS verifies the provided information and conducts necessary background checks. Once processed, the IRS will communicate the assigned nine-digit CAF number to the representative, usually via mail.

Using the CAF Number in Practice

Once a CAF number is assigned, tax professionals use it in their interactions with the IRS. The CAF number should be included on all future authorization forms and in any correspondence or communication with the IRS regarding a client’s tax affairs. This includes phone calls to the IRS, written correspondence, and interactions at IRS offices.

The CAF number enables the IRS to directly send confidential taxpayer information and notifications to the authorized representative. This streamlined communication ensures that only approved individuals gain access to sensitive tax data, enhancing security and efficiency in resolving tax issues. By using the CAF number, representatives can request client tax transcripts, review account information, and engage in productive discussions on behalf of their clients, facilitating comprehensive tax services such as tax planning, audit defense, and appeals representation.