Obtaining a CAF number is a straightforward yet crucial step on the professional journey of any tax resolution specialist or authorized representative. This critical identification number eases the process of communication with the IRS and serves as a testament to your authorized status, allowing you to represent your clients effectively in tax matters. Whether you are working with a client for the first time or are a seasoned professional aiming to enhance your practice, understanding the nuances of the CAF number is essential.
Do you have questions about the CAF number? You’re not alone. The experts at IRS Solutions® are here with answers to some of the most frequently asked questions:
1. What Is IRS CAF Number?
The IRS CAF number is a unique nine-digit identifier assigned to professionals who are authorized to represent others in tax matters. This number is used by the IRS to manage and streamline information regarding these professionals, facilitating quicker and more efficient communications with the IRS. It serves as a reference to the file containing legal authorizations submitted by a tax resolution professional, helping IRS personnel to verify the professional’s authority to access specific taxpayer data without requiring a faxed signed authorization each time.
2. What Does CAF Stand For?
CAF stands for Centralized Authorization File.
3.What is a CAF File?
The Centralized Authorization File is a database maintained by the IRS. It contains information about professionals who are authorized to represent taxpayers in matters pertaining to the IRS. This database includes details of the legal authorizations that have been filed by tax resolution professionals, allowing IRS personnel to quickly verify whether a professional has the necessary authority to access specific taxpayer data. When a tax professional obtains a CAF number, it identifies their file within this database.
4. Who Can Get a CAF Number?
Professionals who are appointed to represent others in tax matters are eligible to obtain a CAF number. This includes tax resolution specialists, Enrolled Agents (EAs), Certified Public Accountants (CPAs), bankruptcy lawyers, and other authorized representatives who need to communicate with the IRS on behalf of their clients.
5. How To Apply for CAF Number from the IRS?
The quickest way to secure your CAF Number is to go to the Tax Pro Account site that lets tax professionals request and receive their CAF numbers completely online with no waiting and no forms to fill out. https://www.irs.gov/tax-professionals/tax-pro-account
To get your CAF number, you will need to use ID.me to verify your identity. https://id.me/
If you don’t have a Tax Pro account yet, it’s easy to sign up for one. Visit the Tax Pro Account page and click the “Log in to Tax Pro Account” button. You can then create an account or sign into an existing account.
Once logged in to your Tax Pro Account, you can use the “Get One Now” link to request your CAF number. If your request is completed, you will receive a success message that displays your CAF number.
If you experience issues with requesting your CAF number or lose your CAF number, you can call the Practitioner Priority Service for assistance.
Another way to have a CAF Number assigned to you is to mail or fax in a Form 8821 (Tax Information Authorization) or Form 2848 (Power of Attorney) for your first client. When prompted for your CAF number, write “none” on the form and in a couple of weeks, the IRS will mail your CAF Number to you.
6. Does a CAF Number Expire?
A CAF number does not expire. It remains valid for ongoing use in communications and representations with the IRS. However, it’s important to note that the authorizations to represent a client such as Form 2848 or Form 8821, which are linked to the CAF number, may have expiration dates.
7. How Do I Find My IRS CAF Number?
Your CAF number should be listed on previously filed authorization forms such as Form 2848 or Form 8821. If you are part of a larger organization or firm, the administrative staff or a designated department within your organization might maintain records of CAF numbers for all representatives. You can check with them to find your CAF number.
Tax professionals who forget or misplace their CAF number can get help from the IRS. Call the Practitioner Priority Service (PPS) at 866-860-4259. A PPS agent will help you retrieve your CAF number after you authenticate your account.
Remember to store your CAF number in a secure and easily accessible place once you find it, as it is a critical piece of information for your practice in tax resolution or representation.
8. How Do I Renew my CAF Number?
Unlike the Preparer Tax Identification Number (PTIN), which must be renewed each year, the CAF number does not require renewal.
9.What is a CAF Number on Form 2848?
On IRS Form 2848, “Power of Attorney and Declaration of Representative,” the CAF number identifies the representative or tax professional who is authorized to act on behalf of a taxpayer in matters concerning the IRS. When a tax professional fills out Form 2848, they are required to include their CAF number in the designated section of the form.
10. What is a CAF Number on Form 8821?
On Form 8821, “Tax Information Authorization,” the CAF number serves a similar purpose as it does on Form 2848. It is a unique identifier for tax professionals or representatives who are authorized to access tax information on behalf of a taxpayer.
11. What Does CAF Mean on a W-2?
A CAF does not typically appear on a W-2 form. A W-2 form is a tax document that employers are required to send to their employees and the IRS at the end of each year. It reports the employee’s annual wages and the amount of taxes withheld from their paycheck. Representation is not required on a W-2.
12. Do I need a CAF number for POA?
Yes, if you are a tax professional or representative who intends to act on behalf of a taxpayer in matters concerning the IRS, you will need a CAF number to file a Power of Attorney (POA). The CAF number is used when submitting Form 2848, “Power of Attorney and Declaration of Representative,” to the IRS. This number helps the IRS to quickly identify and verify your credentials and authorizations, facilitating a more streamlined and efficient process for handling POA requests.
13. How long does it take to get a CAF Number?
A bit of patience might be required as you await your CAF number. It can take 30-60 days to process. Once you receive your CAF number and are granted access to the Transcript Delivery System (TDS) You can use the IRS Solutions® CAF Check Monitoring to verify the approval status of your future authorizations directly from the client dashboard, facilitating the seamless downloading of transcripts and other pertinent documents.
14. Do I need a CAF number to use IRS Solutions Software?
Having a CAF number is an essential step to both practicing tax resolution and using our software. Here are some additional resources for you to help guide you on your journey:
To learn more about IRS Solutions®, a Tax Pro’s Best Friend. Schedule a demo today.
ABOUT THE AUTHOR
David Stone
Founder and President at IRS Solutions
After years of working as an IRS Officer, David changed sides and became an Enrolled Agent. In 2011, he used his experience to create IRS Solutions, a fully integrated system that incorporates all the tools that tax resolution pros need to streamline cases.
