Form 8655 Authorization Agreement: Everything You Need to Know
As a tax professional, you know how important it is to have the proper authorization to act on behalf of your clients. This is where Form 8655 Authorization Agreement comes into play. Let`s dive into what Form 8655 is and how it can benefit your tax practice.
What is Form 8655?
Form 8655, also known as the IRS Authorization Agreement for Electronic Funds Withdrawal, is a document that authorizes the IRS to withdraw tax payments directly from a taxpayer`s bank account. This form is commonly used by tax professionals who prepare and file tax returns on behalf of their clients.
Why is Form 8655 important?
Form 8655 is crucial for tax professionals for several reasons. Firstly, it allows them to withdraw tax payments directly from their client`s bank account, which is more convenient and efficient than using paper checks. Secondly, it ensures that the taxpayer`s payment is credited to their account on time, avoiding any penalties or interest charges that may result from a late payment. Finally, it provides the tax professional with the necessary authorization to act on their client`s behalf, ensuring compliance with the IRS regulations.
How to fill out Form 8655
Filling out Form 8655 is relatively straightforward. As a tax professional, you will need to obtain the necessary information from your client, including their name, address, and taxpayer identification number (TIN). You will also need to provide your own business information, including your name, address, and Electronic Filing Identification Number (EFIN).
Once you have gathered the necessary information, you will need to complete the authorization section, which includes the taxpayer`s signature, date, and information about the account from which the funds will be withdrawn.
It`s important to note that the taxpayer must sign the form, authorizing the tax professional to withdraw funds from their account. Without a signature, the form is invalid, and the tax professional cannot act on their behalf.
Submitting Form 8655
Once you have completed Form 8655, you can submit it to the IRS by mail or fax. It`s essential to double-check the form for accuracy and ensure that all necessary signatures are included before submitting it to the IRS.
Conclusion
Form 8655 Authorization Agreement is a valuable tool for tax professionals, providing them with the necessary authorization to act on behalf of their clients and ensuring efficient tax payments. By understanding how to fill out and submit Form 8655, you can streamline your tax practice and provide your clients with excellent service.