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Discussion:Third Party Designee Question!

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Discussion Forum Index --> Business Growth Community --> Third Party Designee Question!

Youngtaxdude (talk|edits) said:

12 August 2010
Hi guys, question here about third party designee. I am looking to start a small tax preparing business this season, I did about 10 last year of friends, and shooting for 25-50 this year. Do I need to sign the Third Party designee section? I am not a CPA Yet, so is this required? Also what else do I need to start this year. I have my PTIN, applying for EFIN efile soon. Anything I'm missing? Thanks!!

Belle (talk|edits) said:

August 12, 2010
Your client is the one "signing" that the person listed in the third party designee area (my software fills it in for me...)will be allowed to discuss the return with the IRS. In theory..... In the real world, it doesn't work quite as smoothly as was anticipated when the option was first implemented.

Wahoo (talk|edits) said:

13 August 2010
I would recommend having your clients designate you as a third party designee. You can do so without a CPA. This saves some headaches (and reduces your dependence on a lazy or scared client) to contact the IRS if issues ever arrive with that year's return.

Pink Pearl (talk|edits) said:

13 August 2010
3rd party is only good for a year tho..not much use when the CP notice comes about the same time 3rd party expires.

Heritage120 (talk|edits) said:

14 August 2010
I fill in the 3rd part designee the majority of the time. I always ask the client. If I need to discuss the return past the year or there is a cp notice involved, send in a 8822 that gives me the ability to talk about CP notices. Once you get a CAF # you use that same number regardless of the client. I had a a client that had a hefty late filing penalty on an 1120s today and called up IRS and they removed the penalty and interest. Hope that helps.

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